President Biden Takes Drastic, Emergency Measures In Response to Banking Issues
Going into the weekend, the possibility of another banking crisis sent everyone into a panic after the Silicon Valley Bank collapsed in only 48 hours. The Biden Administration quickly took drastic, emergency measures to save the banking industry. On Monday, the President tried to assure the American people that they should “feel confident” in their banks after his response:
Biden reiterated a statement from the FDIC and Treasury Department during public remarks Monday morning, telling reporters that the federal government would guarantee depositors at the banks access to their funds. He added that no such protection is being offered to the banks’ investors, however. His administration has also fired the leadership at both banks.
“No losses will be borne by the taxpayers,” Biden emphasized. “Instead, the money will come from the fees that banks pay into the deposit insurance fund. Because of the actions that our regulators have already taken, every American should feel confident that their deposits will be there if and when they need them.”
It remains to be seen whether President Biden’s actions and assurances will address this issue. We certainly hope this will not become a contagion. But it’s critical that we first understand what caused this.
From all appearances, the collapse of these banks is not a repeat of the 2008 financial crisis when banks failed after taking gambles on subprime mortgages and other risky endeavors. Rather, the collapse is akin to the “run on the banks” portrayed in the movie It’s a Wonderful Life.
The bank likely made bad decisions in response to how aggressively the Fed. raised interest rates to combat the inflation we’ve experienced for the past two years. As a result, the banks’ traditional response methods failed, leading to the run on the Silicon Valley Bank.
The Biden Administration stepped in and guaranteed that bank depositors would still be able to access their money. Also, the investors would not be protected by the government – in other words, no bailouts.
Biden later promised that his Administration would hold everyone accountable who might have caused this collapse (if laws were indeed broken). He also shifted blame to the Trump Administration: “Unfortunately, the last administration rolled back regulations.”
Let's not put all the blame on the former President for the current state of the economy. Radical, out-of-control spending, relentless printing of money, and spiking interest rates are why the country is suffering economically – not Trump's banking regulations.
But will the Biden Administration utilize fiscally conservative methods to solve these economic issues? Of course not. Biden and the far Left continue to double down on reckless spending and higher tax rates. His proposed budget last week proves that.
Today's full Sekulow broadcast includes even further analysis of Biden’s drastic measures. ACLJ Senior Advisor for National Security and Foreign Policy Ric Grenell also joins, as he discusses some of the banking fallout as well as the troubling news that China is helping broker an agreement between Saudi Arabia and Iran.
Watch the full broadcast below: