(DCWatchdog.com) – President Joe Biden blasted his predecessor Donald Trump for rolling back “tough” bank regulations, which he claimed led to the collapse of Silicon Valley Bank (SVB) last week.
SVB, the 16th biggest bank in the United States with assets worth over $200 billion, went down in less than 48 hours because of a quick run of its clients. The development has sparked fears of more bank collapses and a 2008-style financial crisis.
Another smaller banking institution – New York-based Signature Bank – collapsed after the SVB.
Biden’s accusations against Trump, which blamed the SVB collapse on him, came in a Twitter thread.
In it, the Democrat president decried what he described as a weakening of protections put in place after the 2008 crisis, which left banks with “trillions of dollars of worthless investments in subprime mortgages,” Newsmax reported.
“We must reduce the risk of this happening again,” read a post on the Democrat president’s Twitter account.
“During the Obama-Biden Administration, we placed tough requirements on banks to make sure the crisis we saw in 2008 wouldn’t happen again,” Biden added.
“Unfortunately, my predecessor rolled some of those back,” he charged.
In the same thread, the president vowed that bank investors would remain on their own, and heads would roll among those responsible for the collapses.
“The management of both these banks will be fired,” Biden declared with respect to Silicon Valley Bank and Signature Bank.
The Federal Deposit Insurance Corporation (FDIC) has taken over both collapsed banks.
“Investors in the banks will not be protected. They knowingly took a risk, and when risks don’t pay off, investors lose their money. That’s how capitalism works,” the president added.
At the same time, he insisted that “no losses” caused by the two bank’s collapses “will be borne by the taxpayer.”
“We’ll pay for it from the fees that banks pay into the Deposit Insurance Fund,” the Democrat president insisted on his Twitter profile.
“If a bank is taken over by the FDIC [Federal Deposit Insurance Corporation], the people running that bank shouldn’t work there anymore,” he wrote.
“A full accounting of what happened and why so those responsible can be held accountable. In my Administration, no one is above the law,” Biden vowed.
“I will ask Congress and banking regulators to strengthen the rules for banks to make it less likely that this kind of bank failure happens again,” the president promised.
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