The United States government stepped in Sunday night to stop a widespread banking crisis after the historic failures of Silicon Valley Bank and Signature Bank over the weekend. NewsNation host Leland Vittert says despite the talking points from Wall Street and the White House, it’s a bailout, and there will be more of them.
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The recent announcement of the Silicon Valley Bank’s decision to repay its Paycheck Protection Program (PPP) loans has sent a strong message to bank executives across the country. The move comes as many banks are facing criticism for their handling of the loans, which were meant to provide relief to small businesses during the coronavirus pandemic.
According to Fox News anchor and financial journalist, Leland Vittert, “This is a huge win for Silicon Valley Bank, but also for the larger banking industry. It shows that transparency and responsibility are key to not only building trust with customers and regulators, but also maintaining a strong reputation in the industry.”
The PPP loans were a part of the CARES Act, which was signed into law in March of this year. The program was designed to provide loans to small businesses impacted by the pandemic, with the hope of keeping them afloat during a time of financial uncertainty.
However, there has been widespread criticism of the program, with some banks accused of prioritizing larger business customers over smaller ones. Additionally, there have been concerns raised about the lack of transparency around how the loans were distributed and what criteria were used to determine who received the loans.
Silicon Valley Bank’s decision to repay its PPP loans in full has been praised by many as a sign of responsible banking practices. Vittert notes that “the bank’s decision shows that they take their role in the economy seriously, and they understand the importance of transparency and accountability.”
The move also sends a message to other banks, particularly those who may have mishandled the PPP loans. “This sends a message to other banks that they need to take a hard look at their own practices, and make sure they are doing everything they can to help small businesses during this difficult time,” says Vittert.
Overall, the decision by Silicon Valley Bank to repay its PPP loans is an important step towards restoring trust in the banking industry during a time of significant financial uncertainty. It shows that banks can and should be held accountable for their actions, and that transparency and responsibility are key to building a strong reputation in the industry.
"For whatever reason, the bank’s large depositors chose to expose themselves to serious risk. When their bet turned out badly, in effect they wanted the government to provide the insurance that they did not pay for… this is Donald Trump’s bailout. The reason this is a bailout is that the government is providing a benefit that the depositors did not pay for. It also is, in effect, a subsidy to other mid-sized banks, since it tells their depositors that they can count on the government covering their deposits, even though they are not insured and the bank is not subject to the same scrutiny as the largest banks.
This is where the fault lies with Donald Trump. It was his decision to stop scrutinizing banks with assets between $50 billion and $250 billion that led to the problems at SVB.
Prior to the passage of this bill, a bank the size of SVB would have been subject to regular stress tests. A stress test means projecting how a bank would fare in various bad situations, like the rise in interest rates that apparently sank SVB.
If regulators had subjected to SVB to a stress test, they would have almost surely recognized its problems. They then would have required it to raise more capital and/or shed deposits.
But Trump pulled the regulators off the job."
https://www.counterpunch.org/2023/03/14/svb-was-donald-trumps-bailout/
This is infuriating the laws need to be made to clawback airline & bank ceos at least stock & bonus money when they accept a bailout
And then there's no one to bail us out of the mess they got us into. I wish the adults were back in charge.
If they keep getting to keep their bonuses & are never held accountable it will just keep happening.
The ones who presided over these debacles should be fired, stripped of their Golden Parachutes and prosecuted for stock fraud for selling theirs off.
Bank and corporate bailouts is robbing Americans.
The MSM never accepted that inflation was here for 2 years now.. now they must face the music
Laws and regulations are worthless when they aren't enforced.
Where did you come from?!!
A decent, fair report on this issue…bail outs…compensation…OUR HARD EARNED TAX DOLLARS…Thank God…I actually heard this…keep it up. Great work that is NOT overlooked, by me, at least…
and so they can give themselves big bonuses, sell off their shares and have no consequences once they have run the bank into the ground with more loans than deposits.
Biden doesn't hold anybody accountable, he just blames Republicans for everything and thinks that's how you're supposed to do it…empty words.