{"id":172344,"date":"2023-03-14T00:55:26","date_gmt":"2023-03-14T00:55:26","guid":{"rendered":"https:\/\/precoinnews.com\/?p=172344"},"modified":"2023-03-14T00:55:26","modified_gmt":"2023-03-14T00:55:26","slug":"political-blame-game-erupts-over-svb-failure","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/politics\/political-blame-game-erupts-over-svb-failure\/","title":{"rendered":"Political blame game erupts over SVB failure"},"content":{"rendered":"<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/images.axios.com\/pkr-iGDGyCwG4fUHTzbQWYqNw44=\/0x477:5669x3666\/1920x1080\/2023\/03\/13\/1678742399887.jpg\"><\/p>\n<p>Sen. Elizabeth Warren (D-Mass.). Photo: Al Drago\/Bloomberg via Getty Images<\/p>\n<p>Republicans and Democrats alike have wasted no time turning the collapse of Silicon Valley Bank into a political football, seizing on the themes already animating each party&#x27;s economic message heading into 2024.<\/p>\n<p><strong>Why it matters: <\/strong>The 2008 financial crisis \u2014 and the bailouts for big banks that followed \u2014 spawned significant populist movements on both the right and left, with legacies still felt in today&#x27;s politics.<\/p>\n<ul>\n<li>The fallout from SVB&#x27;s failure appears to be limited, but neither party can risk underestimating the scale of a potential &quot;bailout&quot; backlash.<\/li>\n<li>&quot;This is not 2008,&quot; White House press secretary Karine Jean-Pierre stressed at a briefing. &quot;This is not a bailout.&quot;<\/li>\n<\/ul>\n<p><strong>Driving the news: <\/strong>President Biden and many congressional Democrats have their eyes fixed on one juicy culprit \u2014 former President Trump and his 2018 rollback of parts of the Dodd-Frank Act, which provided regulatory relief for midsized banks such as SVB.<\/p>\n<ul>\n<li>In an address Monday morning in which he told Americans that their deposits are safe, Biden called on Congress to strengthen bank rules and blamed Trump&#x27;s deregulation \u2014 much as he did after last month&#x27;s train derailment in East Palestine, Ohio.<\/li>\n<li>&quot;Let\u2019s 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,&quot; Sen. Bernie Sanders (I-Vt.) said in a statement.<\/li>\n<li>Sen. Elizabeth Warren (D-Mass.), one of the key architects of post-2008 reforms, called specifically for the 2018 law to be repealed in an interview with Politico.<\/li>\n<\/ul>\n<p><strong>Reality check: <\/strong>While progressives like Warren and Sanders may feel vindicated, 17 of their Senate Democratic colleagues voted with Republicans to pass Trump&#x27;s deregulation in 2018.<\/p>\n<p><strong>The other side: <\/strong>Republicans have been less unified in their messaging, waiting to see how the Biden administration would handle the SVB collapse this weekend before executing an attack plan.<\/p>\n<ul>\n<li>House Oversight Chair James Comer (R-Ky.) and Florida Gov. Ron DeSantis called SVB a &quot;woke&quot; bank, suggesting it was distracted by diversity, equity and inclusion initiatives.<\/li>\n<li>GOP presidential candidate Nikki Haley accused Biden of &quot;pretending this isn&#x27;t a bailout,&quot; claiming that taxpayers would foot the bill when the FDIC&#x27;s backstop fund runs out.<\/li>\n<li>Trump said Biden would go down as &quot;the Herbert Hoover of the [modern] age&quot; and predicted a bigger economic collapse than the Great Depression.<\/li>\n<\/ul>\n<p><strong>Reality check: <\/strong>There is no evidence that DEI policies played any role in SVB&#x27;s failure, or that a second Depression is on the horizon. And the Deposit Insurance Fund relies on fees that banks pay \u2014 not taxpayer money \u2014 to establish exactly this type of fail-safe.<\/p>\n<p><strong>What&#x27;s next: <\/strong>House Republicans will hold a private conference call Monday night to discuss how the GOP should respond to the collapse of SVB, a senior GOP aide told Axios.<\/p>\n<p>Source: <a href=\"https:\/\/www.axios.com\/2023\/03\/13\/silicon-valley-banks-political-blame-game\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sen. Elizabeth Warren (D-Mass.). Photo: Al Drago\/Bloomberg<\/p>\n","protected":false},"author":3,"featured_media":172343,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23055],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Political blame game erupts over SVB failure - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/politics\/political-blame-game-erupts-over-svb-failure\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Political blame game erupts over SVB failure - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"Sen. Elizabeth Warren (D-Mass.). 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