AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |
Back to Blog
Hue and cry anderson ca home security4/11/2023 ![]() Those firms could have fronted their payroll for 30-60-90 days if they were really such great companies. Most of these companies are backed by big venture capital or private equity firms. The FDIC was talking about giving an advanced dividend of anywhere from 30-60% against the depositors’ receivership certificates. There are plenty of ways, plenty of ways to protect those employees, ensure those companies could make payroll today and then again at the end of the month. Now the sympathetic parties here who are at no fault are the employees of the companies who had deposits at Silicon Valley Bank. And then even once Silicon Valley Bank went into receivership on Friday, they didn’t have to bail out all the depositors. But I think the ideological opposition in the Democratic Party to any kind of merger, and frankly, just desiring state control of assets as opposed to private control, blocked that merger. And then six days ago when it was clear that Silicon Valley Bank was on the verge of failing, they should have arranged some kind of shotgun wedding merger with a larger bank that had a stronger balance sheet. You can’t take in demand deposits at 3, 4, 5% and invest them in Treasuries that are at 1 or 2% for five or ten years and not face that squeeze. I mean, bank analysts on Wall Street saw this. But even looking back six months ago, they should have seen at the supervisory level what was happening in Silicon Valley Bank. It was their reckless spending that created runaway inflation, which led to higher interest rates, which squeezed banks in so many different ways. You know, let’s step back two years and remember they created the environment that caused Silicon Valley Bank and potentially other banks to fail. It’s pretty much Joe Biden and progressive failures all the way down. I think this stinks to high Heaven, Senator Cotton. HH: Well, I heard you threw shade at me last week when I was missing in action, but I will forgive that, because you’re here this week to talk about the blue bank bailout. HH: United States Senator Tom Cotton joins me. Senator Tom Cotton joined me this morning: Let’s protect community and regional banks in this country. And the rationale for that is the same as it is for this. One final point for people who say well, this is just because it’s a blue bank, Powell when he was at the Treasury Department in 1991 actually guaranteed all depositors in the Bank of New England under a Republican administration. As it is, people are doing that, and those banks are having a field day. Morgan, Citibank, Bank of America and Wells Fargo. Everyone from every regional bank, not just in Silicon Valley, but in red and blue states, would be pulling their money and putting it in J.P. ![]() ![]() If we don’t do that, the result would have been that we’d have four banks in this country. I do believe that the people who just had money in the bank, they didn’t know that those deposits were at risk. I have no sympathy for the people who were the investors in the bank, certainly not for the executives in the bank who clearly mismanaged the situation. ![]() We want to have community banks, regional banks in this country. My view is the principle is pretty simple. ![]() RK: Well, thanks, Hugh, for having me back on. Give us the version of what’s been going on in your life for the last 96 hours. And some of my political friends say this never would have happened if it hadn’t been a blue bank. I know that a lot of my conservative friends in the banking business and small businesses wanted this to happen, because they were afraid of a run of many other banks. And so I extended to him an invitation, because I’m of two minds. Ro Khanna represents Silicon Valley, and as such, he’s been in the news a lot defending the blue bank bailout that we had over the weekend of the Silicon Valley Bank in Silicon Valley, and of course, of Signature Bank in New York City. HH: Congressman Ro Khanna has been a guest on the program before, Democrat from the 17th Congressional district in California. Congressman Ro Khanna joined me this AM to discuss the fallout from the bailout of #SVB: ![]()
0 Comments
Read More
Leave a Reply. |