Joe Biden is running the government for the benefit of his politically-connected friends.
But his latest giveaway is threatening the entire country.
And Ted Cruz dropped one epic truth bomb on Joe Biden that left Democrats frantic.
The sudden collapse of Silicon Valley Bank became the second largest bank failure in American history when adjusted for inflation.
The value of the bank’s bond investments sank from rising interest rates leaving it with not enough assets to cover its deposits.
Instead of properly managing its interest rate risk, the bank focused on its woke corporate agenda.
A run on the bank led to $42 billion being withdrawn in one day.
And the bank’s collapse created shockwaves in the financial world and sparked fears about the health of the broader banking industry.
President Joe Biden bailed out the trouble bank by covering depositors’ losses above the $250,000 insured by the Federal Deposit Insurance Corp.
Sen. Ted Cruz (R-TX) torched Biden for the unprecedented bailout and warned that the move will only encourage more bad behavior in the industry.
“It’s called into question a lot of the financing for venture capital, and it has potentially imperiled a significant number of mid-sized banks,” Cruz said on his podcast. “In response to this, the Biden administration rolled out a major bailout, conveniently bailing out the politically connected friends of the Biden White House in a way that will have lasting repercussions for the economy, and will almost certainly incentivize future bad conduct by other banks.”
Silicon Valley Bank’s board of directors was stacked with Democrat donors and insiders with ties to former President Barack Obama, Hillary Clinton, and former Speaker Nancy Pelosi (D-CA).
Cruz warned that others would see Biden’s bailout and realize they could do the same thing as long as they support the Left’s political priorities.
“They were gambling that the Fed would not raise rates even though they’d been screaming from the mountaintops that they were going to raise rates,” Cruz said. “A bank that is being prudent can hedge its investments against interest rates rising by investing also in counterbalancing investments that will go up when interest rates go up. They didn’t do that! They were focused on virtue signaling. They were focused on showing just how woke they are.”
The bank had no chief risk officer between April 2022 and January 2023 and its Risk Committee had no one with a background in risk management.
The head of risk management spent a significant amount of her time pushing woke LGBT initiatives.
Just hours before the bank’s collapse, they handed out big bonuses to all of their employees.
“As far as I’m concerned, this is like Bonnie and Clyde. They’re robbing the bank as they know their customers’ deposits are about to get blown up. And much of the media coverage has ignored the exceptionally bad conduct by the bank’s officers,” Cruz concluded.
Democrats complain about big banks but are more than eager to bail them out when they have the right political connections.