Sanders nixes fed bailout of Big Tech bank, but OK with bank-to-bank bailout

Blames Trump for deregulation bill

BURLINGTON, Vt., March 12 – Sen. Bernie Sanders (I-Vt.) on Sunday issued the following statement on Silicon Valley Bank:

“Let’s be clear. The failure of Silicon Valley Bank is a direct result of an absurd 2018 bank deregulation bill signed by Donald Trump that I strongly opposed. Five years ago, the Republican Director of the Congressional Budget Office released a report finding that this legislation would ‘increase the likelihood that a large financial firm with assets of between $100 billion and $250 billion would fail.’

“Unfortunately, that is precisely what happened. During the debate over the legislation I said: ‘Are our memories so short that we learned nothing from the 2008 Wall Street crash? Have we learned nothing from the Savings and Loan disaster of the early 1990s or the thievery of Wells Fargo over the last couple of years or the dishonesty of Equifax or the accounting fraud at Enron and Arthur Anderson or the failure of Long-Term Capital Management or the billions of dollars in fines that financial institution after financial institution has paid out for illegal or deceptive activities?’ Sadly, the Republican Congress and the Trump Administration answered all of these questions with a resounding NO.

“Now is not the time for U.S. taxpayers to bail out Silicon Valley Bank. If there is a bailout of Silicon Valley Bank, it must be 100 percent financed by Wall Street and large financial institutions. We cannot continue down the road of more socialism for the rich and rugged individualism for everyone else. Let us have the courage to stand up to Wall Street, repeal the disastrous 2018 bank deregulation law, break up too big to fail banks and address the needs of working families, not the risky bets of vulture capitalists.”

Categories: Congress

13 replies »

  1. Self-describe socialist says now is not the time for socialist policies. I get it. Scratches head.

      • I couldn’t make ice cream soda’s last night because I ran out of syrup…. we all knew: Trump’s fault. Dessert hater.

    • You obviously either did not read/understand what he said or you are deliberately and dishonestly mischaractarising his position.

  2. B.S. you’re too old to think right, retire!

    President Trump nor his policies had anything to do with SVB leadership’s mismanagement of depositors money. Bank leaders and their attorneys, accountants, and compliance officials knew the rules. They had 5 years to learn them, implement them, and enforce them. It had to do with the investment practices. Stop lying B.S.!

    No bailout, let the FDIC process work and then the markets to whether they will survive. No bailout!

  3. When insolvency meets a BRICS wall. Grammy Yellen came out Sunday to say the bankrupt Treasury will not bail out the over-leveraged, bankrupt Fed. Both are checkmated Save the financial system or save the dollar? Raise rates to ease inflation or lower the rates and see the dollar become worthless. I’ve waited for this for a very long time. I give kudos to the fraudsters for keeping up this illusion for as long as they have – COVID only slowed it down and made it 100x worse. The panic is off-the-charts, the lies even more absurd, and no one has any clue how it will play out. One thing is for sure, the countries sitting on the giant piles of gold and resources are watching the West run around with their hair on fire. Well played indeed.

  4. So, blame Trump for signing a bill. Bill creation and passage into law, mr. sanders- are the legislative branch- not executive. Unless I’m mistaken, you mr. sanders have been a representative (Ha!) or senator for 32 years. At some point did not an aide point out the three branches of government and basic civics to you? Or, di you continue bloating and just not listen….
    The SVB issue is more related to crony capitalism and use as a laundromat by some of your donor-class buddies than anything to do with banking regulation. In fact, federal law concerning banking has increased dramatically since 2008- you’d have know that if you were paying attention.

  5. The taxpayers shouldn’t be interested business of bailing out banks or anyone for that matter.

  6. What?? Bernie Sanders said this bank failure is Trump’s fault? Not Congress spending or Biden’s inflation or the Fed or bad management or corporate greed? Shocking! A Trump signed “absurd 2018 bank deregulation bill” was the cause of failure!! If it was so bad, I wonder why Mr Sanders and his colleagues didn’t change it over the last two years when Democrats controlled the Presidency, the Senate and the House of Representatives? Wait, I know, it’s Monday morning and Bernie is QB!!

  7. Sorry, Senator Sanders…..Try instead your Communist comrade Barney Frank from MA for some of the “blame”.

  8. The feds increased the prime lending rate to fight inflation, this left the fixed rates of the banks loans insufficient to make sustainable profits so masses of depositors withdrew their money from the banks to put in the money and T-bills market with their iPhones in just a few hours threatening to kill liquidity in the whole system come Monday morning. The Feds and the president then lifted the limit on the amount of money they guarantee the depositors will never loose which especially benefits the very big players because if they can’t invest and pay their loans the whole damned economy is in danger of collapsing. And certain Senators are perfectly correct when they promise the taxpayers will not pay the bill, at least it won’t appear on their tax bills anytime soon but when the Feds print the money to bailout the investors inflation is going to get much worse! But that don’t bother Senator Sanders on the first place because he don’t know what he’s talking about and second because with an income and benefits he gets inflation don’t hurt him all that bad.

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