Senator Ted Cruz has slammed the Biden Administration for effectively bailing out Silicon Valley Bank, labelling it a ‘corrupt Bonnie and Clyde’ like operation.
On his “Verdict” podcast, Cruz stated that the failure of SVB has “called into question a lot of the financing for venture capital, and it has potentially imperiled a significant number of mid-sized banks.”
“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,” Cruz asserted.
The Senator continued, “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.”
“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,” Cruz added referring to the revelation that SVB was obsessed with pushing ‘diversity and inclusion’ policies: