Silicon Valley Bank aimed to create the wrong kind of ‘safe haven’: Kennedy
FOX Business host Lisa “Kennedy” Montgomery joined co-hosts on “The Big Sunday Show” to discuss the collapse of Silicon Valley Bank (SVB), which Fox News correspondent and co-host Gillian Turner described as “the collapse largest in the financial sector since then. 2008.”
SVB is one of the top 20 commercial banks in the United States, with over $200 billion in assets, and its current customers include Shopify, Etsy, Fitbit, Roku, and Ziprecruiter.
Billionaire investor Bill Ackman tweeted that a source said investors would receive 50% of their money on Monday and Tuesday, with the remaining balance based on the value achieved over the 3 to the next 6 months. Ackman warned that without a system-wide FDIC deposit guarantee, more bank runs could begin Monday morning.
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Treasury Secretary Janet Yellen and other officials tried to calm fears by stressing the safety and resilience of the American banking system. Yellen noted that the collapse of one regional bank is highly unlikely to cause a national disaster, Sunday morning on CBS.
House Speaker Kevin McCarthy expressed hope on “Sunday Morning Futures” that someone could buy the bank, which would be the best outcome to let people understand that “we can move forward in the right way.” But , Florida Governor Ron DeSantis told “Sunday Morning Futures” that the federal government has not stopped the crisis.
“We have such federal regulations, we have a huge federal bureaucracy, and yet they can’t seem to be there when we need them to prevent something like this, so we’ll see we what they do. going into tomorrow, but I think it’s a big disappointment,” DeSantis said. “It kind of reminds me of stuff we saw in the financial crisis… This is supposed to be their job, and they always seem to screw up when it counts.” .”
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During “The Big Sunday Show,” Kennedy weighed in on DeSantis’ analysis by saying, “What he’s saying is there’s so much bureaucracy and there was so much legislation after the 2008 financial crisis, they didn’t streamline things, they didn’t. to make things more efficient or understandable, they just added more layers and that puts more pressure on an already over-satisfied, over-burdened system.
Kennedy also criticized SVB’s chief risk officer, questioning whether their focus on personal statements about sexuality and immigration status could have come at the expense of ensuring the bank was well run and safe for its customers. buy
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Kennedy said, “The question is, is this a special area where the [SVB] was the chief risk officer more interested in sharing their personal statement about sexuality and immigration status than talking about creating safe spaces for employees at the company? It seems, no, a safe place is a well-run bank where my money is not going to disperse if people start panicking and that’s what they are doing. “