During an exclusive interview with Meet the Press, Senator Bob Menendez (D-N.J.) reacts to the collapse of the Silicon Valley Bank.
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#SiliconValleyBank #Bank #Finance…(read more)
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New Jersey Senator Bob Menendez has stated that he is not prepared to offer Silicon Valley Bank a bailout without further information about the bank’s financial situation. In recent weeks, there have been reports that the bank is facing financial trouble due to its exposure to struggling companies.
Menendez, who is the ranking member of the Senate Banking Committee, said in a statement that he is concerned about the impact a bailout could have on taxpayers, and that he wants to ensure that the bank is able to weather the current economic storm before committing any funds.
“While I am sympathetic to the challenges that Silicon Valley Bank is facing, I am not ready to offer a bailout at this time,” Menendez said. “Before we consider any kind of assistance, we need to have a comprehensive understanding of the bank’s financial situation and how it plans to address any problems.”
The senator’s statement came after Silicon Valley Bank reported a net loss of $88.4 million in the first quarter, up from $27.8 million a year earlier. The bank’s CEO, Greg Becker, acknowledged that the results were disappointing, but said that the bank was still in a strong position.
“Our balance sheet remains robust, with ample liquidity and capital, and we are well positioned to support our clients through these challenging times,” Becker said in a statement.
Despite Becker’s reassurances, there are concerns that Silicon Valley Bank could be particularly vulnerable to the economic fallout from the COVID-19 pandemic. The bank is heavily exposed to the technology and venture capital sectors, which could suffer as investor confidence falls.
Menendez’s stance reflects broader concerns among lawmakers and financial experts about the potential cost of bailouts in the current economic environment. With many companies struggling to stay afloat, there are fears that a wave of bankruptcies could be on the horizon, placing an enormous burden on taxpayers.
As such, there is likely to be intense scrutiny of any proposals for bailouts, with lawmakers insisting on rigorous assessments of each company’s financial position before committing any funds. While such caution is understandable, it remains to be seen whether it will be enough to prevent a wave of business failures and a deepening of the economic crisis.
So, is it true the amount used. To bailout Depositors at SVB was above the amount in the FDIC federal fund? In addition, do you know who actually owns the bank? They’ve sued – in New York- because apparently the LLC or whatever it is has assets separately in the amount of 2 billion. So the stock holders are trying to get their monies by suing. Apparently, the 2 billion may cover the stocks. Why is it the monies aren’t given or paid to the FDIC fund? If someone can please explain. Seems awfully unfair they bailed out all depositors regardless if their savings was above the 250k limit. In addition, how is it the investors may be able to recoup as well?
And Comcast says, "Everything's fine, American worker. Nothing to see here. Just take this politician's word for it."
But you will BAILOUT the RICH b/s they are your DONORS! That is what the SYSTEM is set for- to keep the rich richer by giving the money collected from middle class who live on pay checks!
They are bailing out the donor class, they've said already they are bailing out those depositors BEYOND what the FDIC covers.
Let them bankrupt. They'll never learn.
Where does this end? If I deposited money in Silvergate and they leveraged that 20x, do I get my money back. Or how about FTX USD accounts. Why don't I get that back? Isn't the Oval Office the insurer of all risks.
People should be in prison for this
Massive bailout.
Bailed out..Yep now the Bankers are back in business to repeat the same BS over again.
If you are not furious right now you are not paying attention. The Federal Reserve is bailing out the failing banks through inflation. They are printing more money to pay off the depositors 100% instead of only $250K thru FDIC insurance. This reduces the value of our dollars and suspends any liability from attachment to bad institutional banking investments such as ESG crap like in the case of SVB. What this means is the Federal Reserve just stole our money thru inflation that is invisible to us. Banks just got a free pass from any liability and have unlimited risk… because they will be made whole while our money devalues to cover their bad investments. The second and third order effects of this will be significantly worse. This fixes nothing but we just paid for the bank failures. Wake up!!!!!!"
Well at least we got rid of the mean tweets……
He says he might be a dirty rotten crook, but I’m not a stupid dirty rotten crook.
CEO, CFO and politicians who own the stock should be behind bars. Their accounts should be seized.
Never bail out a bank again, bail out the depositors and imprison the bankers. If you don't do that you're worthless to society and should join the bankers in prison.
Annnd once again, the banks are mismanaged, bonuses paid, shares dumped and a bail in. What an absolute joke, 2008 all over again. The rich gamble and stuff up, then get a to big to fail and a bail out. Then after everything goes pear shape the government will give out money to tech companies to “stimulate” growth. And in ten years their will be a new Jeff bezos.. and the media will say what a remarkable business leader.. after the business was grown off the back of government stimulus and handout.. to the cost of the people. This flogs should be left to go belly up, like everyone else had to face during the GFC.. look at all the home owners that never got a bail out. Thrives.
The democrat donors needed their bail out from the administration that caused all this in the first place. Elections matter
The failed administration just bailed out the political rich. FDIC had smaller deposits covered.
It's a crazy situation.
I also just made a video about it.. explaining what's going on. Cheers everyone
This corrupt piece of garbage is going to bailout that bank faster than he can get contracts for his friends using his position
Looks like Yellen lied. SVB is receiving the very definition of a bailout. This will just cause more inflation. Poorly positioned banks and their irresponsible leadership will be rewarded for their bad behavior while the American middle class and poor struggle with higher prices. Biden is now a one term president.
Well, get ready because there will be a bailout.
Lol! Opps this spoiled fast!
Total beess
Rules don't apply to the rich. They were given a bailout by unelected people!!!!
Ol' Vlad an 'em are loving this. Thinking it's McDonald's.
They did just bail them out…incredible