Former US President Donald Trump's team responded to Democrats' claims that he was responsible for the Silicon Valley Bank collapse, the 2nd largest in American history.
Donald Trump campaign spokesperson Steven Cheung called the Democrats and Biden administration officials "out-of-control" as they "pathetically" blamed Trump for "their failures with desperate lies, such as the CCP (Chinese Communist Party) spy balloons, the train derailment in East Palestine, and now the collapse of SVB," according to Fox News.
Cheung also noted that the economic measures of Pres. Joe Biden are "anti-America policies" that caused the suffering of ordinary Americans.
Silicon Valley Bank, headquartered in Santa Clara, California, was the sixteenth-largest bank in the United States until it failed last week and fell under the supervision of the federal government.
The Federal Deposit Insurance Corporation (FDIC) only guarantees accounts up to $250,000, and some investors argue a government bailout is needed to safeguard depositors.
FDIC-insured deposits are scheduled to be ready by Monday morning, fueling worries that a rush of withdrawals may cause a domino effect.
Read Also : How Did Silicon Valley Bank Fall in 48 Hours?
What Did Donald Trump Do?
Donald Trump campaign responded to leftist criticism of his 2018 signing of a bipartisan package that scaled-down Dodd-Frank, a 2010 federal legislation that modernized banking regulation after the Great Recession.
The measure lifted the asset threshold for "systematically important financial institutions" from $50 billion to $250 billion, which indicated that Trump was relaxing requirements for major banks while exempting smaller banks from strict regulations.
As a consequence, the Silicon Valley Bank, which had $209 billion in assets by the end of 2022, was no longer considered to be a structurally significant financial institution and was thus exempt from the stricter requirements that apply to larger banks.
Yale University professor Howard Forman has revealed the names of the Republican senators who supported the proposal to lessen monitoring of SVB in 2018.
The list includes Republicans like Marco Rubio, Lindsey Graham, Rand Paul, and Mitch McConnell and Democrats like Joe Manchin and Tim Kaine, per The Independent.
In his Sunday message, Sen. Bernie Sanders said the Donald Trump administration ignored the 2008 Wall Street meltdown and Enron scandal.
Sen. Bernie Sanders noted that it's not the right moment for the US government to rescue Silicon Valley Bank from financial ruin.
He stated, "If there is a bailout of Silicon Valley Bank, it must be 100 percent financed by Wall Street and large financial institutions." Business Insider reported.
