President Joe Biden can be convicted if he saves the banks or convicts if you don't.
Some of the most powerful banks in the country, including JPMorgan Chase, Wells Fargo, Citigroup and Truist have teamed up to support First Republic Bank in difficulties with a $30 billion cash injection going to calm market anxiety and avoid a domino effect. bank failures and Demonstrate that the sector is still going strong.
It came just days after the White House used the White House Fund. Deposit Insurance, a $100 billion fund financed with the premiums that banks pay to the Federal Insurance Corporation Deposits, to insure Silicon Valley Bank deposits. that broke the last week, and Signature Bank, which was shut down by regulators.
JUST IN: President @JoeBiden blames @realDonaldTrump for bank collapse in 2023. Your reaction. pic.twitter.com/YGxMbIvJmp
— Simon Ateba (@simonateba) March 13, 2023
The idea is that the banking industry will save itself, not that the government save the rich bankers whose recklessness has endangered the economy, the prosperity and tranquility of the United States.
However, repeated assurances from the government that there was no money from Taxpayers create potential political vulnerability. While not yet There are signs that a one-off bank shock could turn into a major systemic collapse, any future use of public funds could give to Republicans the opportunity to sue Biden.
During the Obama-Biden administration, we put tough requirements on banks like Silicon Valley Bank and Signature Bank—including the Dodd-Frank Law to make sure the crisis we saw in 2008 would not happen again.
— Joe Biden (@JoeBiden) March 14, 2023
The last administration rolled back some of these requirements.
This week's events show the government is on a knife's edge in the face of the banking crisis, the main aspects of which it cannot control.
The situation is so politically sensitive for Biden because the decision A wiser policy, in a sense, would be to allow more banks to fail. small ones like SVB and Signature Bank. Biden has based all his political mythology in defense of middle- and working-class Americans, despite have served for a long time as a senator from Delaware, a haven for American finance.
Joe Biden's Silicon Valley Bank bailout is socialism for the rich. pic.twitter.com/rkGv3Re4Aw
— Nikki Haley (@NikkiHaley) March 17, 2023
But presidents face demands for attention and political capital. multiple and often contradictory. Any hesitation in supporting the SVB on Last weekend could have triggered a chain of consequences which would have plunged the entire sector into a crisis that would have required a Much greater government intervention and, potentially, funded bailouts by taxpayers.
It would have dire consequences for Biden's reputation for management. economic and probable re-election campaign, which to succeed must support America's recovery from the worst pandemic in a century, high inflation and... political instability . . .
0 Comments