Shark Tank’s Kevin O’Leary has voiced his opinion against Silicon Valley Bank (SVB) receiving a government bailout. On Fox Business’s Cavuto: Coast to Coast, O’Leary explained his critiques. He argued that the bailout policy was a moral hazard and “creating an isolated incident” which applied to the entire banking system.
O’Leary went on to explain his predictions of what the unintended consequences of the bailout policy would be. He argued that it would signal to banks that the Federal Reserve would rescue them no matter what, encouraging them to take risks and act recklessly.
O’Leary has also predicted that there will be “all kinds of new regulations” for the regional bank system going forward. He has stated that the bailout policy has ruined SVB’s franchise value, rendering it “no better than radioactive waste.”
The Department of Justice and the Securities Exchange Commission have just announced their formal investigation into SVB’s insolvency. O’Leary believes that the federal government should have just let SVB fail before creating a panic and changing policy for the entire banking system.
In this day and age, it is concerning that the government is using taxpayer funds to bail out a bank that has been deemed “irresponsible” and “reckless”. Instead of using our hard-earned money to bail out banks, the government should be using it to create jobs, improve infrastructure, and aid in the development of new technologies.
The GOP has long been against bailouts, and this case is no exception. We should be standing by our principles and holding the banks accountable for their actions. The government should not be enabling banks to act recklessly, and the bailout of SVB should be a lesson to other banks that they can’t get away with irresponsible behavior.
We need to restore our faith in the banking system, and we cannot do this if we keep bailing out banks that don’t deserve it. We need to stick to our principles and not let the government bail out banks that have acted recklessly and irresponsibly. This is the only way to ensure that the banking system works for the people and not just the banks.
Erica Carlin is an independent journalist, opinion writer and contributor to several news and opinion sources. She is based in Georgia.