Bank Bailouts: Both Parties are Guilty
The failure and bailout of Silicon Valley Bank shows that outspoken politicians from both parties are complicit with the unchecked financial gambling of the rich and well-connected.
The fallacy of banking regulations is belied by the fact that banking lobbyists contribute EQUAL amounts of money to BOTH parties to ensure special treatment.1
When Elizabeth Warren complains that the rollback of the Dodd-Frank Act allows unregulated banks to gamble and fail, she conveniently ignores the fact that Barney Frank (who wrote the Dodd-Frank regulations) was sitting on the Silicon Valley Bank Board of Directors when it made those gambles and failed.
And when Gavin Newsom asked Congress to bail out SVB, he conveniently omitted the fact that SVB proudly advertised three of Newsom’s wineries as SVB clients on its website.2 How many millions of lost dollars did Congress bail out for Newsom?
These comments are political theater by well-connected, career politicians who are in bed with the banking lobby. If banks are too important to fail, then their gambling CEOs should have their pay/bonuses/golden parachutes confiscated and redistributed to their suffering middle-class customers.
https://www.opensecrets.org/federal-lobbying/top-recipients?cycle=2022&type=C
https://www.dailymail.co.uk/news/article-11863183/Slip-mind-Gavin-Newsom-praises-SVB-bailout-fails-say-three-wineries-clients.html