Should taxpayers be on the hook for failing banks? “If Biden loses in 2024, this will be the reason”
But that latter certainty has been shaken over the past two weeks, with the collapse of Silicon Valley Bank (SVB) raising the specter of the 2008 financial crisis.
Last week, a friend told me that his family in Ohio and West Virginia were fuming over the administration’s decision to bail out SVB and Signature Bank, two banks that catered to the high-tech industry and took unnecessary risks.
“Why did Biden have to save their skins?” he asked. “If Biden loses in 2024, this will be the reason. People in the Midwest are furious about this decision.”
In short, the argument was about whether the federal government should have guaranteed all depositors’ money, or only up to $250,000 per account holder, the current limit. Should an Iowan farmer have to prop up an insolvent bank in California? Or to put it differently, would the administration have intervened if a bank in Iowa had gone under?
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