Tom Cotton blasts Biden for SVB bailout, economic turmoil that caused collapse: His ‘all-round failures’
Arkansas Sen. Tom Cotton, R., took on Biden’s economy on ‘Sunday Morning Futures,’ alleging that policies implemented under the current administration are to blame for the infamous Silicon Valley Bank collapse that left markets scrambling earlier this month.
“The failure of Silicon Valley Bank and the stress it puts on our banking industry and the economy is truly Joe Biden’s failures all the way,” he told the Fox News anchor, Maria Bartiromo.
“It was Joe Biden’s reckless spending that created runaway inflation, that led to higher interest rates, that put pressure on banks like Silicon Valley Bank, and it’s the administration of Joe Biden who failed to properly oversee and oversee a bank like Silicon Valley Bank six months ago or a year ago to ensure that they were properly managing the risks of interest rate differentials between deposits on the one hand and assets on the other,” he said.
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Cotton, who serves on the Senate Judiciary Committee, alleged that the Biden administration would welcome a double standard when selecting banks to be bailed out, criticizing the decision to bail out Silicon Valley Bank while arguing that banks whose customers are largely rooted in the oil and gas industry would have been treated differently.
“It’s obvious to everyone that Joe Biden wouldn’t have bailed out a central Texas bank that almost exclusively insured the oil and gas industry,” he said.
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He then delved into criticism of Biden’s reluctance to help arrange a “shotgun marriage merger” (an emergency merger between two institutions resulting in at least one of the struggling companies) between Silicon Valley Bank and another larger institution, saying, “They are [the Biden administration] ideologically opposed to any type of merger. »
“What we got instead was the Biden bank bailout which, in fact, will go to Chinese companies because it’s well known that Silicon Valley Bank was an access point for Chinese companies to get American money…” he said.
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Senator Cotton is far from the only right-wing critic to criticize the Biden administration for allegedly creating shaky ground that caused the bank to collapse.
Former UN Ambassador Nikki Haley warned against bailing out the bank in a March 11 tweet, writing, “Private investors can buy the bank and its assets. It is not the responsibility of the American taxpayer to intervene. corporate bailouts must stop.”
Former President Donald Trump’s team also ripped “out of control” Democrats for blaming the collapse, among other issues the country continues to face, in a statement to Fox News Digital.
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“The out of control Democrats and the Biden administration pathetically kept trying to blame President Trump for their failures with desperate lies, like the CCP (Chinese Communist Party) spy balloons, the train derailment in eastern Palestine and now the collapse of SVB,” the statement read.
Liberals, meanwhile, criticized the former president for signing bipartisan legislation rolling back parts of the Great Recession-era Dodd-Frank Act in 2018.