Latest / The Ben Ferguson Podcast / President Biden's Claim That Bank Bailouts "Won't Cost The Taxpayers", is a Fantasy

Transcript

President Biden's Claim That Bank Bailouts "Won't Cost The Taxpayers", is a Fantasy · The Ben Ferguson Podcast

• 0:01
  Speaker 1: So we're getting word that another bank has collapsed. Signature
• 0:06
  Speaker 1: Bank has been shut down in connection with Silicon Valley
• 0:10
  Speaker 1: Bank collapse. This bank, Signature Bank, was founded in two
• 0:14
  Speaker 1: thousand and one. It is a New York based bank,
• 0:17
  Speaker 1: not a Silicon Valley Bank based bank. It was popular,
• 0:21
  Speaker 1: we're now being told among crypto companies. Federal regulators on
• 0:26
  Speaker 1: Sunday said that the New York based Signature Bank was
• 0:29
  Speaker 1: being shut down to protect customers and the financial system
• 0:33
  Speaker 1: following the collapse of California's Silicon Valley Bank. The announcement
• 0:37
  Speaker 1: came in a joint statement from the US Treasury Department,
• 0:39
  Speaker 1: the Federal Reserve, and the Federal Deposit Insurance Corporation known
• 0:42
  Speaker 1: as FDIC. The regulators said that SVB clients will have
• 0:47
  Speaker 1: access to their money starting Monday and no expense the
• 0:50
  Speaker 1: American taxpayer. They're lying to you. I don't believe them
• 0:52
  Speaker 1: at all. A similar program, they said, will be enacted
• 0:56
  Speaker 1: for Signature Bank, which was closed Sunday, but by its
• 1:00
  Speaker 1: state chartering authority quote all depositors of this institution will
• 1:05
  Speaker 1: be made whole. The joint statement reads, as with the
• 1:08
  Speaker 1: resolution of Silicon Valley Bank, no losses will be borne
• 1:11
  Speaker 1: by the taxpayer. Spokesman for Signature Bank is declined to
• 1:15
  Speaker 1: comment now. This bank, founded in two thousand and one.
• 1:18
  Speaker 1: The New York based Signature Bank was popular among crypto companies.
• 1:21
  Speaker 1: The institution provided deposit services for its clients digital assets,
• 1:26
  Speaker 1: but did not make loans collaterized claralyzed by them. Leading
• 1:32
  Speaker 1: up to the SVP collapse, the banks that it had
• 1:34
  Speaker 1: been trying to reduce these deposits. As recently as Thursday,
• 1:38
  Speaker 1: Signature said it was in a well diversified financial position
• 1:42
  Speaker 1: they were lying and had limited digital assets related deposit
• 1:46
  Speaker 1: balances in the wake of the industry developments, quote unquote,
• 1:50
  Speaker 1: we want to make it clear again that Signature Bank
• 1:53
  Speaker 1: is a well diversified, full service commercial bank with more
• 1:56
  Speaker 1: than two decades of history and solid performance serving middle
• 1:59
  Speaker 1: mark It's businesses. That's the Signature Bank co founder in
• 2:04
  Speaker 1: chief executive officers set in a statement saying, quote, we
• 2:08
  Speaker 1: have built a strong reputation serving commercial clients through nine
• 2:12
  Speaker 1: business lines and reached an excess of one hundred billion
• 2:16
  Speaker 1: in assets by continually executing our single point of contact
• 2:21
  Speaker 1: relationship based model, where banking teams are capable of meeting
• 2:24
  Speaker 1: all client needs. Signature bank was notable for having former
• 2:29
  Speaker 1: Democratic Congressman Barney Frank on its board. Frank signature Dodd
• 2:33
  Speaker 1: Frank at Craft in the wake of the O eight
• 2:35
  Speaker 1: financial crash, sought to improve accountability and transparency in the
• 2:39
  Speaker 1: financial system, and that former Democratic Congressman Barney Frank was
• 2:43
  Speaker 1: on the board of a bank. Now that's been taken
• 2:45
  Speaker 1: over by the government. Under the law, banks with assets
• 2:48
  Speaker 1: in excess of fifty billion were deemed as being potentially
• 2:51
  Speaker 1: too big to fail, and we're therefore subject to a
• 2:54
  Speaker 1: host of rigorous testing and regulations. Twenty eighteen, President Trump
• 2:58
  Speaker 1: signed the Economic Growth Regatory Relief and Consumer Protection APT
• 3:03
  Speaker 1: with rollback key regulations in the Woke Dot Frank Bill.
• 3:08
  Speaker 1: So now you have another bank that has gone under.
• 3:13
  Speaker 1: Coin Base just so you know, coin base is where
• 3:17
  Speaker 1: most people actually trade cryptocurrency. Coinbase says it has about
• 3:22
  Speaker 1: two hundred and forty million in cash balance with signature
• 3:25
  Speaker 1: bank Coinbase Global about two hundred and forty million in
• 3:29
  Speaker 1: corporate cast balance. The US Crypto Exchange sign tweet on Sunday,
• 3:33
  Speaker 1: hours after state regulators closed the New York base lender
• 3:37
  Speaker 1: due to FDIC holds on signatures transactions. We're currently facilitating
• 3:41
  Speaker 1: all client cast transactions with other banking partners. The tweet added.
• 3:46
  Speaker 1: The closure comes just two days after California authorities shuttered
• 3:49
  Speaker 1: Silicon Valley Bank and a collapse that royaled the global
• 3:53
  Speaker 1: markets and left billions of dollars of deposits belonging to
• 3:56
  Speaker 1: companies and investors stranded. The US Treasury Department other bank
• 4:00
  Speaker 1: regular set in a joint statement that all depositors at
• 4:03
  Speaker 1: Signature Bank will be made whole and no losses will
• 4:07
  Speaker 1: be borne by the taxpayers. The Signature failure is the
• 4:11
  Speaker 1: third largest in US history. So you have the second
• 4:16
  Speaker 1: largest failure in bank in banking history just a couple
• 4:20
  Speaker 1: of days ago, and then a couple of days later
• 4:22
  Speaker 1: you have the third largest. So the top two of
• 4:26
  Speaker 1: the top three biggest failures in the banking sector have
• 4:29
  Speaker 1: happened in the last forty eight to seventy two hours.
• 4:33
  Speaker 1: Let that sink in real quick. So let's go back
• 4:35
  Speaker 1: to where we are with the banking crisis. How is
• 4:39
  Speaker 1: CNN covering it? Listen to this. Breney Governor Gavin Newsom
• 4:43
  Speaker 1: says he is in touch with the highest levels of
• 4:45
  Speaker 1: leadership at the White House and the Treasury Department to
• 4:48
  Speaker 1: stabilize the situation as quickly as possible. In joining us
• 4:51
  Speaker 1: now is the host of CNN's Nightcap, John Starlin. A. John,
• 4:55
  Speaker 1: you know, a lot of experts are worried about this.
• 4:59
  Speaker 1: But first of all, what does this mean for SVB
• 5:02
  Speaker 1: and the startups that relied on it? There? I mean
• 5:04
  Speaker 1: there's some big companies but also small companies that relied
• 5:07
  Speaker 1: on this bag. There are I mean right now, it
• 5:10
  Speaker 1: means panic and confusion. There are companies in Silicon Valley
• 5:14
  Speaker 1: that are scrambling to make payroll. The money that they
• 5:17
  Speaker 1: had locked up in SVB is now inaccessible, and so
• 5:20
  Speaker 1: what that means is they are one relying on the
• 5:23
  Speaker 1: FDC to make those funds available quickly, and you know
• 5:27
  Speaker 1: it's unclear exactly what percentage of those funds will be
• 5:30
  Speaker 1: available and when. On the flip side, you know, those
• 5:33
  Speaker 1: companies are looking at loans and there are reports that
• 5:36
  Speaker 1: there are venture capital companies looking to buy up the
• 5:40
  Speaker 1: accounts for kind of pennies on the dollars. So what
• 5:42
  Speaker 1: does it mean for the companies It means confusion. But
• 5:44
  Speaker 1: for the workers who are looking for their paycheck this week,
• 5:47
  Speaker 1: it can mean devastation. We haven't seen layoffs yet, but
• 5:50
  Speaker 1: if these companies aren't able to get access to funds,
• 5:53
  Speaker 1: that is definitely a possibility. And I hate to be
• 5:56
  Speaker 1: a pessimist in all of this, but it's a fair
• 5:58
  Speaker 1: question to ask, what is the next possible domino to fault?
• 6:02
  Speaker 1: Will there be another domino? I mean, that is the question,
• 6:05
  Speaker 1: right what is the contagion of this? And the truth
• 6:08
  Speaker 1: is we don't really know. All eyes right now are
• 6:10
  Speaker 1: on a lot of regional banks similar to SVB. One
• 6:14
  Speaker 1: bank that's on people's radar is First Republic Bank, a
• 6:17
  Speaker 1: bank who shares dropped more than fifty percent before being halted. Eventually,
• 6:22
  Speaker 1: this doc rally, but it's down around thirty six percent
• 6:25
  Speaker 1: for the week. First Republic says that their liquidity position
• 6:29
  Speaker 1: remains strong, but come Monday, we'll see if investors and
• 6:32
  Speaker 1: more importantly, the people who have their money in First
• 6:34
  Speaker 1: Republic believe that. And finally, Bloomberg reported that billionaire in
• 6:39
  Speaker 1: ventury capitalist Peter Teal had his companies pull their funds
• 6:44
  Speaker 1: from SVB this week. Do we know what kind of
• 6:48
  Speaker 1: role that played in all this? Well, Peter Teal is
• 6:51
  Speaker 1: an incredibly influential figure in Silicon Valley, and right now
• 6:54
  Speaker 1: there's a lot of finger pointing going on about what
• 6:57
  Speaker 1: caused this bank run on speed be Peter Teal is
• 7:01
  Speaker 1: reported by Bloomberg and his Founders Fund pulled their money
• 7:04
  Speaker 1: out by Thursday and encouraged his companies to pull their
• 7:06
  Speaker 1: money out as well. Well. Word spreads quickly in the valley.
• 7:09
  Speaker 1: Right you have group chats, you have slacks. People are talking,
• 7:12
  Speaker 1: and we saw tens of billions of dollars of money
• 7:16
  Speaker 1: being withdrawn from SVP, which basically was a kiss of
• 7:19
  Speaker 1: death and caused California regulators to shut it down. You
• 7:22
  Speaker 1: might remember that Peter Teal was a big proponent of crypto.
• 7:26
  Speaker 1: He was very, very bullish on bitcoin. He attacked the
• 7:29
  Speaker 1: critics of bitcoin as enemies. Meanwhile, Peter Teele in his
• 7:35
  Speaker 1: Founders Fund sold their crypto and made billions of dollars
• 7:38
  Speaker 1: in the profits. So people in the valley know that
• 7:40
  Speaker 1: Peter Teal is very skilled at moving his billions of
• 7:43
  Speaker 1: dollars to safe harbor when there's volatility in the markets.
• 7:48
  Speaker 1: I love this. There may be some volatility to count.
• 7:50
  Speaker 1: Thank you CNN for that brilliant account. You know you
• 7:55
  Speaker 1: know reporting there you have two of the three biggest
• 7:58
  Speaker 1: banks in this country, they're defaulted that have been shut down.
• 8:03
  Speaker 1: Two of the three biggest in history have happened the
• 8:06
  Speaker 1: last what twenty four forty eight hours? Seventy two hours? This,
• 8:10
  Speaker 1: I mean, come on, really, like, this is what has
• 8:14
  Speaker 1: happened here, like for real, And you're sitting there going,
• 8:17
  Speaker 1: oh there, maybe it's some more volatility. No, you think
• 8:21
  Speaker 1: could there be a chance. Yeah, Now I'm worried that
• 8:25
  Speaker 1: the bailout's coming. They keep saying no taxpayer dollars going
• 8:29
  Speaker 1: to cost you nothing. I don't believe them. I think
• 8:32
  Speaker 1: you're gonna end up seeing some bailouts. The question is,
• 8:35
  Speaker 1: are you in favor of bailing these companies out? We've
• 8:39
  Speaker 1: been lied to. We now know these bank bailouts are
• 8:42
  Speaker 1: going to be a really big problem. We know now
• 8:45
  Speaker 1: that they are going to be a gonna probably cost
• 8:49
  Speaker 1: us a have a lot of money. They're saying, no, no no, no, no,
• 8:52
  Speaker 1: bailouts are gonna happen. They're gonna cost you money. I
• 8:54
  Speaker 1: don't believe them for a second. I think they are
• 8:55
  Speaker 1: absolutely gonna cost us a bunch of money. And I
• 8:57
  Speaker 1: think they're lying to us. We have a second bank
• 9:00
  Speaker 1: that has failed. After the first bank that failed, they
• 9:02
  Speaker 1: said was not a big deal as isolated event. Now
• 9:04
  Speaker 1: it's not an isolated event. In fact, we have the
• 9:07
  Speaker 1: second and third largest bank failures in US history. Have
• 9:11
  Speaker 1: happened just over the last several days. And they're like,
• 9:15
  Speaker 1: oh no, it's gonna be fine. We got we gotta
• 9:17
  Speaker 1: plan here. It's not gonna be a bailout, right, not like,
• 9:19
  Speaker 1: oh hey, we're gonna just you know, it won't be
• 9:21
  Speaker 1: like that. Everybody, relax, gonna be fine. I'm telling you,
• 9:24
  Speaker 1: they're gonna end up having to bailout. It's gonna end
• 9:26
  Speaker 1: up costing you something. Signature Bank has been shut down
• 9:30
  Speaker 1: in connection with the Silicon Valley collapse. This bank was
• 9:33
  Speaker 1: found in two thousand and one. The New York based
• 9:35
  Speaker 1: Signature Bank was popular among crypto companies, and it is
• 9:39
  Speaker 1: going to be shut down. Coin Base add two hundred
• 9:42
  Speaker 1: and forty million in cash balance with Signature Bank. That
• 9:45
  Speaker 1: bank now has been shut down. Coin Base two hundred
• 9:50
  Speaker 1: and forty million in cash with Signature Bank. They're saying
• 9:53
  Speaker 1: that they're going to figure this out. Coinbase Bank is down,
• 9:57
  Speaker 1: coin Base is down eight percent. Signature Bank at this point,
• 10:00
  Speaker 1: and they'll be halted. I'm sure it was down twenty
• 10:02
  Speaker 1: two point eight seven percent, down to seventy dollars a chair.
• 10:05
  Speaker 1: That's obviously now going to change drastically. US regulators said
• 10:10
  Speaker 1: they were not going to bail out Silicon Valley Bank.
• 10:14
  Speaker 1: Then a second bank has gone under, and now US
• 10:18
  Speaker 1: regulators are going to bail out Silicon Valley Bank, and
• 10:22
  Speaker 1: customers are apparently going to get another bailout, possibly at
• 10:26
  Speaker 1: this second bank. Don't worry, though, Joe Biden now says
• 10:30
  Speaker 1: he's going to use Valley to hold those responsible for
• 10:33
  Speaker 1: the Silicon Valley Bank failure quote fully accountable. CEO also
• 10:37
  Speaker 1: describes pulling money from bank hours before the collapse as
• 10:41
  Speaker 1: a US bank sitting on unrealized losses of six hundred
• 10:44
  Speaker 1: and twenty billion. In fact, we also know now that
• 10:48
  Speaker 1: Silicon Valley Bank employees actually received in their bank accounts
• 10:51
  Speaker 1: their bonuses hours before the bank was shut down. A
• 10:55
  Speaker 1: new report says, Wow, that's pretty, isn't it. So that's
• 11:01
  Speaker 1: now where we are. Silicon Valley Bank, You're gonna get
• 11:04
  Speaker 1: your money, no problem. And these employees were being told
• 11:11
  Speaker 1: got their bonuses. US Federal Deposit Insurance Corporation offered Silicon
• 11:16
  Speaker 1: Valley Bank employees forty five days of employment and one
• 11:19
  Speaker 1: point five times or salary. A new report says to
• 11:21
  Speaker 1: stay on and help them out. An FDIC official did
• 11:25
  Speaker 1: not comment on the details of CNN, but says the
• 11:27
  Speaker 1: standard practice and one of the first steps too for
• 11:29
  Speaker 1: the independent government agencies to take after being named receiver.
• 11:34
  Speaker 1: US workers also receive their annual bonuses on Friday, just
• 11:37
  Speaker 1: hours before the FDIC took over the collapse lender. Silicon
• 11:42
  Speaker 1: Valley Bank collapsed Friday morning after studding forty eight hours
• 11:45
  Speaker 1: in which a bank run and a capital crisis led
• 11:47
  Speaker 1: to the second largest failure of a financial institution in
• 11:50
  Speaker 1: US history. California regulators shuddered the tech lender and put
• 11:56
  Speaker 1: it under the control of the FDIC. The FDIC is
• 11:59
  Speaker 1: acting as a receiver, which typically means it will liquidate
• 12:01
  Speaker 1: the bank's assets to pay back its customers induce, including
• 12:05
  Speaker 1: depositors as well as creditors. Employees except essential and branch
• 12:11
  Speaker 1: workers were told to keep working remotely. The bank had
• 12:14
  Speaker 1: more than eight thousand, five hundred employees at the end
• 12:16
  Speaker 1: of twenty twenty two. The FDIC said the main office
• 12:19
  Speaker 1: in all seventeen branches of SVP, located in California, Massachusetts,
• 12:24
  Speaker 1: will open on Monday. The FDIC, an independent government agency
• 12:29
  Speaker 1: that insures bank deposits and overseas financial institutions, said all
• 12:33
  Speaker 1: insured depositors will have full access to their insured deposits
• 12:37
  Speaker 1: by no later than Monday morning. It said it would
• 12:40
  Speaker 1: pay uninsured depositors and advanced dividend within the next week.
• 12:44
  Speaker 1: The FDIC took over the mid morning Friday. Usually it
• 12:47
  Speaker 1: awaits until market closed, but they didn't wait. The conditions
• 12:51
  Speaker 1: quote deteriorated so quickly that it couldn't last just five
• 12:55
  Speaker 1: more hours, wrote Better Market CEO Dennis Keller. That's because
• 12:59
  Speaker 1: it's the hausers were drawing their money so fast that
• 13:02
  Speaker 1: the bank was insolvent and an interday closure was unavoidable
• 13:05
  Speaker 1: due to a classic bank run. So what is Biden
• 13:09
  Speaker 1: saying about this? Don't worry, I'm gonna hold those accountable
• 13:13
  Speaker 1: for this. Really, that's what you're gonna say, I'm gonna
• 13:15
  Speaker 1: hold those accountable for this. So no bailout, just kidding
• 13:19
  Speaker 1: a bailout. Another bank closes down, signature bank. Don't worry,
• 13:22
  Speaker 1: We're gonna have another bailout. And let me remind you
• 13:25
  Speaker 1: the experts of what they were saying. Jim Cramer over
• 13:29
  Speaker 1: at CNBC said this a month ago. Last month said
• 13:33
  Speaker 1: this about again about Silicon Valley Bank. Listen carefully and bibe.
• 13:40
  Speaker 1: The ninth best performer year to date is SVB Financial.
• 13:43
  Speaker 1: Don't you want this? Companies a merchant bag with a
• 13:45
  Speaker 1: deposit base. The Wall Street had mistakely concerned about sub
• 13:49
  Speaker 1: child Silk Valley Bank. We just bought one of our
• 13:51
  Speaker 1: favorite research firms, Boffa Davis, and it's become less dependent
• 13:54
  Speaker 1: upon private acqua e venture capitalist offerings. Wait a second,
• 13:57
  Speaker 1: let's try it up. Last year they could come back, Yes,
• 13:59
  Speaker 1: some of them come back here with a stock directly
• 14:01
  Speaker 1: affection oversold position. Stock was the fourth worst performance twenty
• 14:04
  Speaker 1: twenty two. I think the fears were not justified. It's
• 14:07
  Speaker 1: a very compelling situation. Hey. By the way, long term
• 14:09
  Speaker 1: private equiventure capital and I'm going away being the banker
• 14:12
  Speaker 1: to these immense pools of capital has always been a
• 14:16
  Speaker 1: very good business. Stock still cheap. Now. You have to
• 14:19
  Speaker 1: remember that a stock that falls sixty six percent, like
• 14:22
  Speaker 1: SPB Financial did last year, it takes it a lot
• 14:25
  Speaker 1: more to recover after losing two thirds of your value.
• 14:28
  Speaker 1: You need a two hundred percent game to get back
• 14:30
  Speaker 1: to even This is arithmetic, some people call it geometry,
• 14:33
  Speaker 1: So you could argue svb's nearly forty percent rally this
• 14:37
  Speaker 1: year is barely up drop in the bucket, and that's
• 14:40
  Speaker 1: how I want you to think it. I think it's
• 14:41
  Speaker 1: also a good example of why these bounceback moves might
• 14:44
  Speaker 1: be far from over. These stocks did have more room
• 14:47
  Speaker 1: to run, especially if you think they were driven down
• 14:49
  Speaker 1: to artificially low levels by tax law selling, artificial dumping
• 14:53
  Speaker 1: like we saw on Warner Brothers, Discovering or Tesla. That's
• 14:56
  Speaker 1: important because today was one of the worst days since
• 14:58
  Speaker 1: the year began, after these stocks were beating big participants
• 15:01
  Speaker 1: in the decline. I understand that many of the bounces
• 15:04
  Speaker 1: this year have come from stocks that were heavily shorter.
• 15:07
  Speaker 1: Many of them were correctly beaten down. It's just that
• 15:09
  Speaker 1: the decline's got a little too excessive when nothing really
• 15:12
  Speaker 1: bad happened, at least by the end. So there it is.
• 15:16
  Speaker 1: This guy's praising a doom Silicon Valley bank just last month.
• 15:22
  Speaker 1: The stock is quote still cheap. He has it up
• 15:25
  Speaker 1: on his big wall telling you you should buy this,
• 15:28
  Speaker 1: You should buy this, you should buy this, ha ha,
• 15:32
  Speaker 1: just kidding. Tiger Carlson also blasting Jim Kramer for hyping
• 15:37
  Speaker 1: the Doom Bank, saying he's nothing but a professional BS artist.
• 15:42
  Speaker 1: In fact, as with the FTX crypto scam, you may recall,
• 15:46
  Speaker 1: self described financial experts in the media were busy promoting
• 15:50
  Speaker 1: Silicon Valley Bank is a great investment that would last forever.
• 15:55
  Speaker 1: The formerly great but now quite embarrassing Forbes magazine in
• 15:58
  Speaker 1: fact named sv Beach was of America's best banks not
• 16:02
  Speaker 1: once but five years in a row. And of course,
• 16:07
  Speaker 1: inevitably you saw this coming. Here is professional BS artist
• 16:11
  Speaker 1: slash dumb person Jim Kramer of CNBC telling his viewers
• 16:15
  Speaker 1: to buy Silicon Valley Bank even though it was in
• 16:19
  Speaker 1: the process of going under. This is last month SVB Financial.
• 16:23
  Speaker 1: Don't you want this company's a merchant bag with a
• 16:26
  Speaker 1: deposit based The Wall Street had been mistakely concerned about
• 16:28
  Speaker 1: sub and sail Silkla Valley Bank. Recally about one of
• 16:31
  Speaker 1: our favorite research first Boffa Javians, and it's become less
• 16:34
  Speaker 1: dependent upon private acqui and ventric capitalist offerings. Wait a second,
• 16:37
  Speaker 1: let's try it up. Last year they could come back
• 16:39
  Speaker 1: long term private acquiventure capital, and I'm going away being
• 16:42
  Speaker 1: a banker to these best immense pools of capital. Has
• 16:46
  Speaker 1: always been a very good business. Spb's nearly forty percent
• 16:49
  Speaker 1: rally this year is barely up. Drop in the bucket.
• 16:53
  Speaker 1: That's maybe B is great. If that guy ever endorses
• 16:56
  Speaker 1: anything you're doing. Moved to the Canary Islands, change your
• 17:00
  Speaker 1: name because disaster's coming. Tucker's not that far off from reality.
• 17:05
  Speaker 1: By the way, jem hines, the Bank of Cyprus keeps
• 17:10
  Speaker 1: coming up in the Trump Russia investigation. That's what they're
• 17:13
  Speaker 1: trying to talk about. I'm not joking. That clip is
• 17:16
  Speaker 1: actually now showing back up on social media. You can't
• 17:19
  Speaker 1: make this up. But hey, when the banks keep collapsing,
• 17:23
  Speaker 1: don't worry. It won't cost you anything. It's not going
• 17:26
  Speaker 1: to cost you a dime. Why Because we're smart people,
• 17:30
  Speaker 1: right Janet Yellen earlier today saying oh, everything's fine on TV.
• 17:36
  Speaker 1: I want to get straight to it because the markets
• 17:38
  Speaker 1: will soon reopen for trading. Does the government need to
• 17:42
  Speaker 1: intervene and take emergency measures because of svb's failure, Well,
• 17:49
  Speaker 1: let me say America's economy relies on a safe and
• 17:53
  Speaker 1: sound banking system that can provide for the credit needs
• 17:59
  Speaker 1: of our solds in businesses. So whenever a bank, especially
• 18:04
  Speaker 1: one like Silicon Valley Bank with billions of dollars in deposits, fails,
• 18:11
  Speaker 1: it's clearly a concern from the standpoint of depositors, many
• 18:18
  Speaker 1: of which may be small businesses. They rely on access
• 18:22
  Speaker 1: to their funds to be able to pay the bills
• 18:27
  Speaker 1: that they have, and they employ tens of thousands of
• 18:30
  Speaker 1: people across the country. We've been hearing from those depositors
• 18:35
  Speaker 1: and other concerned people this weekend. So let me say
• 18:40
  Speaker 1: that I've been working all weekend with our banking regulators
• 18:44
  Speaker 1: to design appropriate policies to address this situation. I can't
• 18:52
  Speaker 1: really provide further details at this time, but what I
• 18:56
  Speaker 1: do want to do is emphasize that the American banking
• 19:00
  Speaker 1: system is really safe and well capitalized. It's resilient. Can
• 19:07
  Speaker 1: you say whether these problems were unique to Silicon Valley
• 19:11
  Speaker 1: Bank or can you say whether there will be other
• 19:15
  Speaker 1: regional bank failures. Well, look, let me just say that
• 19:20
  Speaker 1: we want to make sure that the trouples that exist
• 19:24
  Speaker 1: at one bank don't create contagion to others that are
• 19:29
  Speaker 1: sound and a goal always of supervision and regulation is
• 19:37
  Speaker 1: to make sure that contagion can't can't occur. Your counterpart
• 19:43
  Speaker 1: in the United Kingdom has said that the government there
• 19:46
  Speaker 1: has ruled out a bailout of the UK arm of
• 19:50
  Speaker 1: Silicon Valley Bank. Have you also ruled out that kind
• 19:54
  Speaker 1: of government intervention? Well, let me be clear that during
• 20:00
  Speaker 1: the financial crisis there were investors and owners of systemic
• 20:09
  Speaker 1: large banks that were built out, and we're certainly not
• 20:13
  Speaker 1: looking and the reforms that have been put in place
• 20:18
  Speaker 1: means that we're not going to do that again. But
• 20:21
  Speaker 1: we are concerned to bet depositors and are focused on
• 20:25
  Speaker 1: trying to meet their needs. Do you expect a deal
• 20:29
  Speaker 1: or something to happen that can reassure the markets before
• 20:33
  Speaker 1: Asia opens tonight and the US markets open tomorrow. We
• 20:38
  Speaker 1: certainly are working to address the situation in a timely way. Now,
• 20:43
  Speaker 1: I know you know this region of the country so
• 20:45
  Speaker 1: well because you served at the San Francisco years ago.
• 20:51
  Speaker 1: The tech sector has already been suffering from layoffs, It's
• 20:54
  Speaker 1: already under pressure, and this is really the hub of
• 20:58
  Speaker 1: American innovation. How severe will the consequences be for that innovation?
• 21:05
  Speaker 1: I think it depends on how this situation is resolved.
• 21:09
  Speaker 1: But will aware that many startup firms have deposits in
• 21:15
  Speaker 1: venture capital firms have deposits at this bank. They have
• 21:21
  Speaker 1: no idea what's happening right now. Second bank has just failed.
• 21:27
  Speaker 1: She has no clue what she's doing. We also have
• 21:30
  Speaker 1: to talk about how woke the bank was that went
• 21:33
  Speaker 1: under a lot of people to understand how woke the
• 21:35
  Speaker 1: bank actually was. Silicon Valley Bank was all about the wokeness.
• 21:43
  Speaker 1: They loved working with woke companies. They love working with
• 21:47
  Speaker 1: liberal companies. They love working with tech companies. They love
• 21:50
  Speaker 1: working with For example, the streaming giant Roku, we're being told,
• 21:54
  Speaker 1: had four hundred and eighty seven million in cash on
• 21:57
  Speaker 1: hand held by Silicon Valley Bank. At streaming Giant, Roku
• 22:02
  Speaker 1: had about one fourth of its cash and equivalence, amounting
• 22:05
  Speaker 1: to nearly a half a billion dollars held in that bank.
• 22:09
  Speaker 1: The entertainment company remains unsure how much of that cash
• 22:13
  Speaker 1: it will recover. According to Variety, the collapse of Silicon
• 22:17
  Speaker 1: Valley Bank was caused by the massive run the bank,
• 22:20
  Speaker 1: with customers driving withdrawals of forty two billion this last
• 22:23
  Speaker 1: week alone. The majority of it Thursday Friday, the sixteenth
• 22:26
  Speaker 1: largest bank by assets, with the US Federal Reserve data
• 22:31
  Speaker 1: showing the bank had two or nine billion assets as
• 22:33
  Speaker 1: of December the thirty first. But this had to do
• 22:37
  Speaker 1: a lot with the fact that this bank was just
• 22:39
  Speaker 1: a woke bank. It was a woke Silicon Valley bank.
• 22:45
  Speaker 1: It was more concerned about global warming than they were
• 22:49
  Speaker 1: about shareholder returns. Yeah. Home Depot founder Bernie Marcus said
• 22:58
  Speaker 1: on Friday that Americans there was time for Americans to
• 23:02
  Speaker 1: wake up after the woke Silicon Valley bank collapsed because
• 23:06
  Speaker 1: they were more concerned about global warming than they do
• 23:09
  Speaker 1: about shareholder returns and fiscal responsibility. Listen to part of
• 23:14
  Speaker 1: this conversation that he had on Fox with Neil Cavudo.
• 23:18
  Speaker 1: But he's watching it just the same. The Home Depot
• 23:21
  Speaker 1: co founder kind enough to join us now, Bernie, always
• 23:24
  Speaker 1: good seeing you. Do you think histories repeating itself? Should
• 23:28
  Speaker 1: people stay calm? What are you telling them? Well? All
• 23:32
  Speaker 1: I know is that I can't wait for Biden to
• 23:35
  Speaker 1: Can I get on the speech again and talk about
• 23:38
  Speaker 1: how great the economy is and how it's moving forward
• 23:43
  Speaker 1: and getting stronger by the day. And this is an
• 23:46
  Speaker 1: indication that whatever he says is not true, and maybe
• 23:51
  Speaker 1: the America people will finally wake up and understand they
• 23:54
  Speaker 1: were living in very tough times that in fact, the
• 23:59
  Speaker 1: recession may have already started. Who knows, but it doesn't
• 24:03
  Speaker 1: look good. And I feel bad for all these people
• 24:07
  Speaker 1: that lost all their money in this woke bank. You know,
• 24:10
  Speaker 1: it was more distressing to hear that the bank officials
• 24:15
  Speaker 1: sold off their stock before this happened. It's depressing to me.
• 24:21
  Speaker 1: Who knows whether there's justice The Partment will go after them.
• 24:24
  Speaker 1: They are woke companies, so I guess not, and they'll
• 24:29
  Speaker 1: probably get away. When you say, well, when you say
• 24:31
  Speaker 1: woke company that's in technology, venture capital funded startups and
• 24:35
  Speaker 1: all of that, they might have been just proportionally exposed
• 24:38
  Speaker 1: to this. Do you think there are others like like
• 24:41
  Speaker 1: this bank out there? I think they probably are. Yeah,
• 24:45
  Speaker 1: I think that the system. I think that the administration
• 24:49
  Speaker 1: has pushed many of these banks into more concern about
• 24:53
  Speaker 1: global warming than they do about shareholder return And these
• 24:59
  Speaker 1: banks badly run because everybody is focused on diversity and
• 25:06
  Speaker 1: all of the walk issues and not concentrating on one
• 25:10
  Speaker 1: thing they should, which is shareholder returns instead of protecting
• 25:16
  Speaker 1: the shareholders and their and their employees. Uh, they're more
• 25:22
  Speaker 1: concerned about the social policies. And I think it's probably
• 25:27
  Speaker 1: a badly run bank. Uh. They've been there for a
• 25:30
  Speaker 1: lot of years. It's pathetic that so many people lost
• 25:35
  Speaker 1: money that will get it back. And you know, Bernie,
• 25:39
  Speaker 1: you might be right on some of them. You might.
• 25:41
  Speaker 1: By the way, I love this guy, right, this is
• 25:43
  Speaker 1: the This is what I love about this home depot founder.
• 25:47
  Speaker 1: You know, Bernie Markets is getting older. He doesn't care
• 25:50
  Speaker 1: to if anybody he says. I think the assistant the
• 25:53
  Speaker 1: administration has pushed many of these banks into more and
• 25:56
  Speaker 1: more concerned about global warming than what they do for
• 25:59
  Speaker 1: sharehold to returns. And these banks are badly run because
• 26:03
  Speaker 1: everybody is focused on diversity and all of the woke
• 26:06
  Speaker 1: issues and not concentrating on the one thing they should,
• 26:09
  Speaker 1: which is shareholder returns instead of protecting the shareholders and
• 26:13
  Speaker 1: their employees, the depositors. Right, they're more concerned about social policies.
• 26:18
  Speaker 1: And I think it's probably a badly run bank. They've
• 26:22
  Speaker 1: been there for a lot of years. It's pathetic that
• 26:25
  Speaker 1: some of people lost their money won't get it back.
• 26:28
  Speaker 1: All right, Before I get into that. I want to
• 26:29
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• 27:42
  Speaker 1: All right, now, I want to go back to this story.
• 27:45
  Speaker 1: He said, here's the other thing. Listen carefully. This is
• 27:47
  Speaker 1: get It's a guy that has nothing to lose. To
• 27:49
  Speaker 1: this point, He's like, look, I've I've done my time
• 27:52
  Speaker 1: and building companies. I build home depot. You want to
• 27:56
  Speaker 1: know what you're really going on. I don't care if
• 27:58
  Speaker 1: I offend people, and I love This is why you
• 28:00
  Speaker 1: should listen sometimes to your elders, because some of them
• 28:04
  Speaker 1: have things to say that other people won't take the
• 28:06
  Speaker 1: risk of saying. And he's got his money and he
• 28:08
  Speaker 1: doesn't care, and he's telling you the truth. And he
• 28:10
  Speaker 1: said this. The FEDS keep raising rates, and inflation keeps
• 28:15
  Speaker 1: going in the wrong direction. It's not staying where it
• 28:19
  Speaker 1: should be. People are struggling. People can't pay their bills,
• 28:22
  Speaker 1: they can't fill their tanks with gas. And if you
• 28:25
  Speaker 1: think that's a good sign, I don't think it is.
• 28:28
  Speaker 1: And we have an administration that's obtus to this. They
• 28:33
  Speaker 1: keep talking about the great times and how good it is.
• 28:36
  Speaker 1: It's not. Somebody with the same head has to come
• 28:39
  Speaker 1: in and understand that you can't do two things. Number one,
• 28:43
  Speaker 1: you can't keep raising rates referring to interest rates, and two,
• 28:48
  Speaker 1: you can't keep inflation as strong as it is, and
• 28:51
  Speaker 1: you can't tax people more than they are. His proposal
• 28:55
  Speaker 1: referring to Biden's proposal tax the middle class and the
• 28:58
  Speaker 1: riches about as dumb as dumb as I've heard in
• 29:00
  Speaker 1: a long time. In a recession like this, you don't
• 29:03
  Speaker 1: do things like that. And by the way, Joe Biden
• 29:05
  Speaker 1: said in the back of the day on record, you
• 29:07
  Speaker 1: don't raise interests or you don't raise taxes when you're
• 29:11
  Speaker 1: dealing with inflation. It's the dumbest thing you can do.
• 29:14
  Speaker 1: But now he needs more money because he wants more control.
• 29:17
  Speaker 1: That's what this all comes down to, is the issue
• 29:19
  Speaker 1: of control. That's why he's saying it the way he is.
• 29:23
  Speaker 1: But Bernie Marcus just said it the way that it
• 29:25
  Speaker 1: should have been, said, woke Silicon Valley Bank was more
• 29:29
  Speaker 1: concerned about global warming than shareholders returns and quotas. And
• 29:34
  Speaker 1: he's right. And if you think this is only in America,
• 29:37
  Speaker 1: you're wrong, because as you heard Janet Yellen say a
• 29:39
  Speaker 1: moment ago when I was playing that audio, the UK
• 29:42
  Speaker 1: is now mulling over the idea of a bailout for
• 29:44
  Speaker 1: the tech firms after the silicon collapse. Authorities in the
• 29:48
  Speaker 1: UK are considering a possible bailout for all the tech
• 29:53
  Speaker 1: firms after the collapse the British brands of Silicon Valley Bank.
• 29:57
  Speaker 1: Jeremy Hunt, the Chancellor, is poorly mowing a possible bailout
• 30:01
  Speaker 1: for tech firms and startups that were affected by the
• 30:04
  Speaker 1: collapse of the Silicon Valley Bank UK. The failure of
• 30:08
  Speaker 1: SVP represents the second largest failure of a bank in
• 30:11
  Speaker 1: US history, only beaten out by the collapse of Washington
• 30:13
  Speaker 1: Mutual during the OA financial crisis. According to the report
• 30:17
  Speaker 1: by the BBC, there is now significant fear about the
• 30:21
  Speaker 1: knock on effect the bank's collapse could have on startups
• 30:24
  Speaker 1: in Britain, with many firms set to lose large sums
• 30:27
  Speaker 1: of money after the Bank of England declared that SVP
• 30:31
  Speaker 1: SVP UK would enter in solving c As a result,
• 30:36
  Speaker 1: the Treasury is now reportedly aiming to offset the damage
• 30:39
  Speaker 1: done by the bank's collapse, with Hunt telling the public
• 30:42
  Speaker 1: broadcaster BBC that authorities are considering various ways of recusing
• 30:48
  Speaker 1: the tech firms affected. So another bailout. One such rescue
• 30:54
  Speaker 1: plan involves providing an emergency cash lifeline for companies hit
• 30:57
  Speaker 1: by SVB going under quote. We want to find a
• 31:01
  Speaker 1: way that ministries can help and avoid all the losses
• 31:05
  Speaker 1: of the incredibly promising firms, the Chancellor wrote, arguing that
• 31:09
  Speaker 1: while the impact of the United Kingdom's overall economy is
• 31:11
  Speaker 1: expect to be minimal, SVPs collapsed would nevertheless risk wiping
• 31:15
  Speaker 1: out many of the countries budding tech enterprises. So, in
• 31:20
  Speaker 1: other words, we're gonna pick winners and losers in different sectors,
• 31:24
  Speaker 1: same thing that they're talking about doing here. We like
• 31:26
  Speaker 1: big tech, we like tech firms, we like quote companies.
• 31:29
  Speaker 1: We don't want them to be hurt, so we'll just say, hey,
• 31:32
  Speaker 1: we're not going to allow them to be hurt, and
• 31:35
  Speaker 1: we like what they're doing, so we'll bail them out.
• 31:38
  Speaker 1: That's how we'll do this. We'll bail them out that way.
• 31:42
  Speaker 1: Does this sound like a very good idea or does
• 31:44
  Speaker 1: it sound like a disaster? To me? It sounds like
• 31:46
  Speaker 1: a disaster. Does it sound like something we should be
• 31:50
  Speaker 1: supporting or advocating for. No, it doesn't. It sounds again
• 31:52
  Speaker 1: like a disaster. Sounds like a terrible, terrible, terrible, terrible,
• 31:57
  Speaker 1: terrible idea, something that should not happen. Yet here we
• 32:02
  Speaker 1: are having this conversation because it's a liberal bank with
• 32:07
  Speaker 1: a woke ideology. That's what it is, a liberal bank
• 32:13
  Speaker 1: with a woke ideology. They're gonna probably bail them out,
• 32:18
  Speaker 1: they're gonna prop them up, and they're gonna tell you
• 32:21
  Speaker 1: it's not going to cost you taxpayers dollars. And when
• 32:23
  Speaker 1: they tell you that, you need to understand they are
• 32:26
  Speaker 1: one thousand percent lying to you. This will cost you
• 32:30
  Speaker 1: some taxpayers dollars. Anyone that tells you that it's not
• 32:34
  Speaker 1: they're lying to you. They are lying to you. I'll
• 32:39
  Speaker 1: say it one more time. They are lying to you.
• 32:44
  Speaker 1: This is going to cost us all a hell of
• 32:46
  Speaker 1: a lot of money. All right. Lastly, please make sure
• 32:49
  Speaker 1: you hit that subscribe button or auto download button wherever
• 32:54
  Speaker 1: you are listening to this podcast right now, and take
• 32:56
  Speaker 1: a moment to write us a five star review. On
• 33:00
  Speaker 1: the Left have been attacking our podcast, writing us bad
• 33:02
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• 33:05
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• 33:08
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