The Democrats’ spending habits, which are dangerously insane and subsidized by taxpayers, were on full display when President Biden falsely claimed that no losses would be borne by the taxpayers in the bailout of Silicon Valley Bank (SVB).
Former South Carolina Republican Governor Nikki Haley slammed Biden for his statement, saying, “Joe Biden is pretending this isn’t a bailout. It is. Now depositors at healthy banks are forced to subsidize Silicon Valley Bank’s mismanagement. When the Deposit Insurance Fund runs dry, all bank customers are on the hook. That’s a public bailout.”
It is indeed a public bailout. The Treasury Department, Federal Reserve, and FDIC announced that they would ensure that all depositors at SVB and another recently collapsed bank, Signature Bank, would have access to their money, even if those deposits exceed the $250,000 threshold.
The cost of the bailout will not be directly borne by taxpayers, but, as Haley pointed out, consumers will ultimately bare the cost in the form of increased fees charged by banks. Banks are expected to assess these increased fees in order to recoup the funds they will be required to pay to the FDIC to rebuild its Deposit Insurance Fund, which will be severely diminished by bailing out the defunct banks.
The collapse of SVB, which was the largest failure since Washington Mutual in 2008, may have been a result of mismanagement; the CEO of SVB reportedly sold about $3 million worth of shares 24 hours before the bank fell.
This bailout is yet another example of Democrats’ dangerous spending habits. Taxpayers should not be responsible for the mismanagement of Silicon Valley Bank. Depositors should be paid by selling off SVB’s assets, not by the public.
The Biden administration should not attempt to conceal their bailout of SVB by falsely claiming that no losses will be borne by the taxpayers. It is an insult to taxpayers’ intelligence and a slap in the face to those who pay their taxes responsibly.
Unfortunately, the only thing that Democrats seem to be interested in is spending taxpayer money, no matter the cost. It is time they take responsibility for their actions and stop making taxpayers foot the bill for their reckless spending.
Erica Carlin is an independent journalist, opinion writer and contributor to several news and opinion sources. She is based in Georgia.