Press ReleaseMarch 13, 2023

Banking Crisis is Latest Sign of Biden Administration Incompetence

Alfredo Ortiz, president and CEO of Job Creators Network, released the following statement on the Silicon Valley Bank crisis:

“The collapse of Silicon Valley Bank and the emerging banking crisis is just the latest sign of incompetence from the Biden administration, its regulators, and bankers who apparently put woke ideology above basic risk analysis. While the Federal Reserve’s rapid interest rate hike in response to Bidenflation was the major cause of the crisis, the Biden administration failed to prevent it. Perhaps regulators turned a blind eye as SVB made Sam Bankman-Fried-style donations to Democrats’ favored causes.”

“At this time, there is no immediate risk to taxpayers because the Deposit Insurance Fund covering depositors is funded by quarterly fees assessed on FDIC-insured financial institutions and interest on funds invested in government bonds. Yet there is an indirect risk as this crisis will cause the Fed to pull back on its planned interest rate increases, entrenching Bidenflation for the even longer term. The Biden administration will be held accountable if it tries to bail out the banks with taxpayer money.

“The bigger concern at the moment is the moral hazard problem of this rescue plan. If banks aren’t adequately punished for their mistakes, like those made by SVB, they will continue to take excessive risks, threatening the entire financial system and economy. High inflation and insolvent banks are the bills coming due for the Biden administration’s reckless spending.”