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 noted is “the biggest financial sector collapse since 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 claimed depositors would allegedly receive 50% of their funds on Monday and Tuesday, with the remaining balance based on the realized value over the next 3 to 6 months. Ackman warned that without a system-wide FDIC deposit guarantee, more bank runs could begin on Monday morning.
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Treasury Secretary Janet Yellen and other officials attempted to calm fears by emphasizing the safety and resilience of the American banking system. Yellen noted that one regional bank’s collapse is highly unlikely to cause a nationwide catastrophe, Sunday morning on CBS.
Speaker of the House Kevin McCarthy expressed hope on “Sunday Morning Futures” that someone could purchase the bank, which would be the best outcome to let people understand that “we can move forward in the right manner.” However, Florida’s Governor, Ron DeSantis, told “Sunday Morning Futures” that the federal government failed to prevent the crisis.
“We have such a morass of federal regulations, we have a massive federal bureaucracy, and yet they never seem to be able to be there when we need them to be able to prevent something like this, and so we’ll see what they do going into tomorrow, but I think it’s just very disappointing,” DeSantis said. “Kind of reminds me of stuff that we saw in the financial crisis… This is supposed to be their job, and they always seem to whiff 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 is so much bureaucracy and there was so much legislation after the 2008 financial crisis, they didn’t streamline things, they didn’t make things more efficient or more understandable, they just added more layers and that adds more weight to an already overburdened, over regulated system. So it’s actually easy for things like this to happen because with that weight, there appear cracks.”
Kennedy also criticized the chief risk officer of SVB, questioning whether their focus on personal narratives about sexuality and immigration status may have come at the expense of ensuring a well-run and safe bank for customers.
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Kennedy added, “The question is, is this a unique area where the [SVB] chief risk officer was more interested in telling their personal narrative about sexuality and immigration status as opposed to talking about creating safe spaces for workers at the company? It’s like, no, a safe space is a well run bank where my money isn’t going to dissolve if people start to panic and that’s what they’re doing.”