When Silicon Valley Bank failed, Democrats were quick to bail out their ideological allies.
But the collapse of SVB has now triggered a banking crisis across much of America.
And now, Joe Biden just outlined a new scheme to pull off a federal takeover of the banking system.
In the aftermath of the failing of Silicon Valley Bank in March 2023, Democrats in Washington, D.C. have a new plan that they say will “stabilize” the banking system.
And that plan involves handing over more power and money to the federal government.
CNBC reports, “President Joe Biden on Thursday urged federal regulators to take up a set of reforms to safeguard the banking system, following the collapse of Silicon Valley Bank and Signature Bank.
“The White House said in a fact sheet Thursday that Biden’s proposals fit into his recent effort ‘to strengthen oversight and regulation of larger banks so that we are not in this position again.’ The administration wants regulators to take a range of steps to reinstate safeguards for banks with assets between $100 billion and $250 billion and bolster supervision over financial institutions.”
Democrats have become so consumed with the power and influence of Silicon Valley that they now want the American taxpayer to be on the hook for an unlimited number of deposits, even if the ultimate bill ends up being tens if not hundreds of billions of dollars.
Under current federal law, deposits are insured up to $250,000.
But after Silicon Valley Bank failed in March, the federal government executed a de-facto bank bailout by giving multiple Silicon Valley tech firms free money even beyond the $250,000 they were legally obliged to insure.
This came at the same time that the bank’s executives were cashing in stock and selling out of their investments into the bank.
What’s more, almost all of the individuals and organizations who ended up being bailed out by the Federal Reserve and the Treasury Department held left-wing views.
In fact, the bank itself almost exclusively catered to major donors of the Democratic Party.
And this could be why Biden is so eager to expand a government-backed program to “stabilize” the banking sector.
Because those who stood to be hit the hardest from the failure of Silicon Valley Bank were major supporters of left-wing causes.
“On Wednesday, a group of Democratic senators, led by financial regulatory hawk Sen. Elizabeth Warren, D-Mass., sent a letter to bank regulators demanding stronger bank capital requirements.”
“Since SVB collapsed in mid-March, members of Congress have introduced a half-dozen bills intended to penalize bank executives and help stabilize the financial system going forward,” adds CNBC.
Democrats like Elizabeth Warren will rail against “deregulation,” and other Democrats in Congress will propose bills they say will “penalize bank executives” who make poor decisions, but all of them want to help incentivize risky behavior by banks which hold views favorable to the Democratic Party.
What’s more, all of them have come out in favor of bailing out either the left-leaning depositors of these banks, or even the banks themselves.
And now, Joe Biden is trying to sell this scheme to the American people as a way to “regulate” the banks and “stabilize” the banking system.