Donald Trump is blaming the failure of Silicon Valley Bank (SVB) on President Joe Biden’s “anti-American policies.”
The bank, which is the 16th largest in the US, fell on Friday after a 60% drop in shares, leading to a run on the bank as panicked customers rushed to withdraw cash.
Federal regulators are looking for a prospective buyer of the institution, and if that fails, they are considering covering even the uninsured deposits at the bank.
Treasury Secretary Janet Yellen has said that the federal government will not bail out the bank, and federal regulators are working with firms on a potential merger with the failed institution.
Nikki Haley, a Republican presidential hopeful, tweeted on Saturday that taxpayers should not bail out SVB, and Vivek Ramaswamy, another Republican presidential hopeful, argued that the FDIC should increase its guarantee level to prevent other frenzied Americans from withdrawing their funds.
Bill Ackman, a billionaire hedge fund manager, said that if the government fails to reach an agreement by Monday morning, there will be an “economic meltdown” within hours.
Ackman believes that “the destruction of these important institutions” will begin once depositors start draining money from regional and community banks – essentially leading to a run on smaller bank across the nation.
Federal regulators may also forego those who have uninsured deposits altogether, and set up a “general banking facility” from the Federal Reserve.
That would support other financial institutions that have done business with SVB so that they wouldn’t have to materially change their business practices or take steep losses.
»Trump blames failure of Silicon Valley Bank on his successor’s ‘anti-American policies’«
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