BIDEN WILL BAIL OUT WOKE BANKS THAT FAIL!

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Episode Transcript

Speaker 1 (00:00):
So you had a major US bank collapse and the
Biden administration was asleep at the will. This was the
biggest bank failure since two thousand and eight. Again, and
the Biden administration asleep at the wheel. Several bank stocks

(00:23):
were also halted trading on Friday, including First Republic, pack West,
and a crypto focused signature bank. First Republic dropped fourteen
point eight percent and pac West shed thirty seven point
nine percent. Some Bellweather bank stocks even suffered smaller losses

(00:44):
as the Silicon Valley bank fallout retreat havoc on regional names. Goldman,
Sack and Bank of America fell four point two and
zero point nine percent. What does this mean, Well, the
US government now having to wake up because they don't
have actual human beings in charge our government that no

(01:04):
policy and said they found a bunch of woke people
they could put in positions based on being woke. Right,
They've got dudes dressed like chicks advising us. They have
a mayor running transportation that knows nothing about being a mayor.
The list goes on and on of the woke individuals
that we have running this country right now. Because everything
was about filling quotas with this administration, and when you

(01:26):
do that, this is what you get. So now the
US is scrambling to prepare for a financial backstop so
stave off a banking panic. They're worried about Monday and Tuesday.
US government. As of Sunday night, they were scrambling, quote,

(01:46):
to prepare emergency measures to shore up banks and the
US economy as the nation braces for a potential bank run,
all because of Silicon Valley bank collect apps. The US
Treasury and the Federal Reserve are jointly preparing to launch
a program to backstop deposits and excess of the Federal

(02:11):
Deposit Insurance Court two hundred and fifty thousand, according to
people familiar with the matter. The Federal Reserve is also
preparing to ease the terms of banks access to its
discount Window, an emergency learning facility for banks to raise cash.
The emergency preparations, even as I am doing this, they saying,

(02:33):
are not yet official. That's how chaotic it is. Because
you have a quota administration, it fills quotas instead of
has serious people in charge of serious issues. Where were
the regulators and how did this even happen? Those are
questions that the media should be asking right now, but

(02:54):
they're not because they're protecting the Biden administration. Now, the
O eight collapse actually made sense. Subprime lending and multiple
other parts of the government not regulating certain things allowed
for that collapse to happen in O eight, and we
saw it coming, and they knew there could be a problem,

(03:15):
But the banks were allowed to do things and package
loans and subprime loans and basically categorize them as being
safer investments than they really were allowed for a massive collapse.
We know that we were supposed to fix it. We
now have a government that basically, if you're on their team,
they look the other way. How do we know this?
We know this from the cryptocurrency exchange collapse and the

(03:38):
number two donor during the midterm elections. The Democratic Party
who was in charge of that cryptocurrency collapse. You would
have thought at that moment that maybe they should have
been really focused on banks that dealt with a lot
of crypto, just like the Silicon Valley Bank. Did they know,
of course not, Why would they? So now we have
the FED in the US Treasury who have not publicly

(04:01):
commented on measures they are considering to save off a
rush of demand for bank account deposits to be withdrawn. Now,
just to put it in perspective, what happened on Friday.
Silicon Valley Bank, the sixteenth largest bank by assets in
the US, failed by mid morning Friday after depositors rushed

(04:23):
to withdraw deposits. This was the largest bank failure since
the financial crisis in oh eight and the second largest
failure in the history of the United States. I want
to say that again, the second largest failure in the
history of the United States of America. And it just
happened like mid morning Friday, and the media was like, Oh, wow,
this happened like it's not a big deal. In fact,

(04:44):
it is a big deal, to the point where now
we're trying to figure out what the hell is going
to happen Monday Tuesday. The government doesn't know what their
plan is. But what we do know is the government
now is worried that customers may try to withdraw funds
from other banks, having other runs on the bank actually happen. Now.
Janet Yellen, who's the woman supposed to be in charge,

(05:06):
another woman who again has apparently no idea what she's
doing at the Department of Treasury is now leaving the
door open for your tax dollars to be used a
bailout of the uninsured deposits above the two fifty minute
maximum at Silicon Valley Bank. Because she and her team
were asleep at the wheel, the Treasury Secretary appeared to

(05:29):
at least hint on Sunday morning that the government might
step in to fund uninsured deposits at Silicon Valley Bank.
It's a tech sector focused bank that collapsed when panic
customers withdrew tens of billions of dollars. All right, I'm
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how does the FDIC work? And if you've ever opened
a bank account, they'll tell you and sell you on.
Your money is secure because we are an FDIC bank,
right the Federal Deposit Insurance Corporation, the FDIC took the

(07:38):
bank into receivership on Friday, and they do insured deposits
up to a quarter million dollars. On Friday, the FDIC
said all insured deposits would be available on Monday morning.
Let me say that again. On Friday, the FDIC said
all insured deposits would be available on Monday morning, meaning

(07:58):
up to two hundred fifty thousand hours. If you had
more than that, you're screwed. At least at this moment.
Most Silicon Valley Bank deposits, however, are above the insured limit.
The FDIC said on Friday that it had not determined
the amount of uninsured deposits, but said depositors with amountain
excess of a quarter million would get an advanced dividend

(08:21):
next week. The amount of such a dividend has yet
to be determined. Quote unquote. Some customers are worried they
will not have access to fund zeded to even make
payrolls and pay vendors this week. Bank regulators are concerned
that panic customers at other banks might also seek to
withdraw their deposits on Monday and Tuesday, possibly putting more

(08:44):
banks in jeopardy, saying, quote, we want to make sure
that the troubles that exist at one bank don't create
other problems at other banks that are sound. That's what
Yellen said in an interview and Face the Nation Sunday morning,
saying quote, we are concerned about the deposits and are
focused on trying to meet their needs. Yelling said that

(09:07):
regulators were not looking to bail out banks with capital
injections like we did a O eight or measures similar
to what we did in O eight, saying quote, we're
not going to do that again because many people believe
that it was a disaster. In that situation, many people
that were irresponsible actually got paid, and that's a problem.
Her comments, however, appeared to leave open the possibility of

(09:31):
the United States government with your tax dollars, and we'd
have to borrow the money to do this because we
don't have the money to do this. Would provide funds
to make sure even uninsured deposits at Silicon Valley Bank
were accessible to customers. Also, they're saying the government could
find a willing buyer for the deposits, most likely one
of the largest US banks, and save the bank that way.

(09:53):
Bloomberg News is reporting right now the Federal Deposit Insurance
Corporation FDIC wants an auction process late Saturday for the
Silicon Valley Bank, with final bids due by Sunday afternoon.
The winner of the auction may not be known until
late Sunday. Bloomberg is now reporting either would likely wipe

(10:15):
out equity holders and holders of debt issued by the bank,
but ensure depositors would have access to funds. Quote unquote,
Janet Yellman, of course knew what her job was. That
was go on TV and tell everybody after a historic
failure of a bank that actually everything is okay, that

(10:35):
the American banking system is totally fine, that this was
just some sort of anomaly. Now, to put in perspective
before I play her for you, as she went on TV,
let me just remind you about actually how big of
a deal this was. The CEO of an incubator in

(10:56):
Silicon Valley came out to put in perspective and said
that the bank failure is an extinction level event. Gary
Tan who's the president CEO of Y Combinator, recently say
that the collapse of Silicon Valley Bank is an extinction
level event for tech startups. Now this guy knows what

(11:20):
he's talking about all right, Gary Tan, is it basically
an incubator has helped launch more than four thousand tech companies,
including Airbnb, which is massive, door Dash which is massive,
and Stripe. Market Watch. Reports of the failure of Silicon
Valley Bank has sent shockwaves throughout the tech startup community,

(11:41):
with fears that it could set innovation back by a decade.
That's where Gary Tan, the CEO of the Startup Accelerator,
came in, saying this is an extinction level event for startups,
warning that the loss of these small businesses could significantly
impact the economy. Tan say, this is an extinction level
event for startups and wells set startups and innovation back

(12:01):
more than ten years. He also said, quote big tech
will not care about this. They have cash elsewhere. All
the little startups tomorrow's Googles and Facebooks will be extinguished
if we don't find a fix now. The fall of
this bank is the largest bank failure. Again, put this
in your head since the collapse of washing a mutual

(12:23):
in two thousand and eight, and it's closure that left
thousands of startups in a precarious position by the end
of twenty twenty two. By the way, the bank had
thirteen locations operating in California, Massachusetts two hundred nine billion
in total assets. Again, this is Silicon Valley Bank two
hundred and nine billion in total assets and one hundred
and seventy four billion in deposits. Many startups, by the way,

(12:48):
had made Silicon Valley Bank their only bank. The two
hundred and fifty thousand of FDIC deposit insurance would not
be enough to cover what most people had in their
bank accounts. Now, the collapse of the Silicon Valley Bank
was caused by this massive run the bank, with customers
initiating with draws of forty two billion this week, forty

(13:09):
two billion. So let's go to the Treasury secretary that
was asleep at the wheel. What does she say about
this on face the nation? Here it is, I want
to get straight to it because the markets will soon
reopen for trading. Does the government need to intervene and
take emergency measures because of svb's failure, Well, let me say,

(13:32):
America's economy relies on a safe and sound banking system
that can provide for the credit needs of our households
and businesses. So whenever a bank, especially one like Silicon
Valley bank with billions of dollars in deposits fails. It's

(13:54):
clearly a concern from the standpoint of depositors, many of
which may be small businesses. They rely on access to
their funds to be able to pay the bills that
they have, and they employ tens of thousands of people
across the country. We've been hearing from those depositors and

(14:17):
other concerned people this weekend. So let me say that
I've been working all weekend with our banking regulators to
design appropriate policies to address this situation. I can't really
provide further details at this time, but what I do

(14:39):
want to do is emphasize that the American banking system
is really safe and well capitalized. It's resilient. Can you
say whether these problems were unique to Silicon Valley Bank
or can you say whether there will be other regional
bank failures. Look, let me just say that we want

(15:03):
to make sure that the troubles that exist at one
bank don't create contagion to others that are sound, and
a goal always of supervision and regulation is to make
sure that contagion can't can't occur. Your counterpart in the

(15:25):
United Kingdom has said that the government there has ruled
out a bailout of the UK arm of Silicon Valley Bank.
Have you also ruled out that kind of government intervention? Well,
let me be clear that during the financial crisis there

(15:45):
were investors and owners of systemic large banks that were
built out and we're certainly not looking and the reforms
that have been put in place means that we're not
going to do that again. But we are concerned to
bet depositors and are focused on trying to meet their needs.

(16:09):
Where were the regulators? Can we all just go back
to that for a second. I mean, when she says
the American banking system is really safe, I'm not saying
I disagree with that, but you just had a historic
bank collapse with a run on the bank. So when
you know, do I really trust you? And this is
the government right now, Let's be honest about our government.

(16:31):
Do we really trust the government right now? Knowing what
we know? And when they tell you that everything is
going to be fine and that the banking system is
strong and it's amazing right and everything else, There's another
part of this that just has to be brought up,
and that is where the hell was the government overseeing

(16:51):
this bank, the regulators overseeing this bank. What's the point
of having regulators if banks can fall apart this quickly?
Can anyone explain that to me? Seriously? Can anyone explain
that to me? Where are the regulators right? Because shouldn't
they have been able to see this coming and get

(17:11):
involved quicker? Because when and I understand this whole idea
of like, hey, we shouldn't bail out people and they
do stupid things. But there are some really good people
that had deposits here. Okay, there were really good people
that worked really hard and did everything they could to
work really hard to provide for themselves and their families.

(17:34):
And they had more than two undred fifty thousand dollars
in this bank that had billions of dollars in deposits
and had to run on the bank worth billions and
billions and billions of dollars? Do they deserve to be hurt?
If you were in that bank and you had more
than twoundyfty thousand dollars in your bank account, I'm sure
you'd be saying, dear government, One you guys didn't do

(17:54):
your job, and two I need you to help me
because this is unfair and that if you do that,
the problem is in the future, can banks be more
irresponsible right and profit from extreme risk just like they
didn't know eight, Just like they didn't know eight, and
know that there's always going to be a bailout. Now,

(18:19):
the US government has already come out and said, and
this is the headline coming from the Washington Post. The
US government says all depositors that failed Silicon Valley Bank
will have access to all their money on Monday. The
move to safeguard bank depositors will not come at taxpayer's expense,
is what the Treasury Secretary Janet Yellen said. The decisions
aim at heading off a panic in the financial markets.

(18:41):
As one man put it, this is incredible. They're going
to print money to bail out at bankrupt bank to
basically prop up a weak, nervous market. As one said,
soon we'll be taking a will barrel full of money
to buy eggs because they keep devaluing the dollar over
and over and over and over and over and over
and over again. And the government that's supposed to have

(19:04):
their hands on this, and the regulators that are supposed
to have their hands on this, clearly we're not paying
attention because we have an administration filled with unserious people.
We have an administration. Now that's a joke. Okay, we
have an administration. Now that is a joke. We also

(19:25):
have to talk about how woke the bank was. That
went under a lot of people to understand how woke
the bank actually was. Silicon Valley Bank was all about
the wokeness. They loved working with woke companies. They love
working with liberal companies. They love working with tech companies.

(19:47):
They love working with For example, the streaming giant Roku,
we're being told, had four hundred and eighty seven million
in cash on hand held by Silicon Valley Bank. That
streaming giant Roku had about one fourth of its cash
and equivalence, amounting to nearly a half a billion dollars
held in that bank. The entertainment company remains unsure how

(20:11):
much of that cash it will recover. According to Variety,
the collapse of Silicon Valley Bank was caused by the
massive run the bank, with customers driving withdrawals of forty
two billion this last week alone, the majority of it
Thursday Friday, the sixteenth largest bank by assets, with the
US Federal Reserve data showing the bank had two or

(20:32):
nine billion assets as of December the thirty first. But
this had to do a lot with the fact that
this bank was just a woke bank. It was a
woke Silicon Valley bank. It was more concerned about global
warming then they were about shareholder returns. Yeah. Home Depot

(20:58):
founder Bernie Marcus said on Friday that Americans there was
time for Americans to wake up after the woke Silicon
Valley bank collapsed because they were more concerned about global
warming than they do about shareholder returns and fiscal responsibility.
Listen to part of this conversation that he had on

(21:18):
Fox with No Cavudo. But he's watching it just the same.
The Home Depot co founder kind enough to join us now, Bernie,
always good seeing you. Do you think history is repeating itself?
Should people stay calm? What are you telling him? Well?
All I know is that I can't wait for Biden
token again on the speech again and talk about how

(21:41):
great the economy is and how it's moving forward and
getting stronger by the day. And this is an indication
that whatever he says is not true, and maybe the
America people will finally wake up and understand they were
living in very tough times that the recession may have

(22:02):
already started. Who knows, but it doesn't look good. And
I feel bad for all these people that lost all
their money in this woke bank. You know, it was
more distressing to hear that the bank officials sold off
their stock before this happened. It's depressing to me. Who

(22:23):
knows whether there's justice the Partment will go after them.
They are woke companies, so I guess not, and they'll
probably get away. When you say, well, when you say
woke company that's in technology, venture capital funded startups and
all of that, they might have been disproportionately exposed to this.
Do you think there are others like like this bank

(22:43):
out there? I think they probably are. Yeah. I think
that the system. I think that the administration has pushed
many of these banks into more concern about global warming
than they do about share older return uh. And these
banks badly run because everybody is focused on diversity and

(23:09):
all of the walk issues and not concentrating on one
thing they should, which is shareholder returns. UH. Instead of
protecting the shareholders and their and their employees. UH, they're
more concerned about the social policies. And I think it's
probably a badly run bank. Uh. They've been there for

(23:33):
a lot of years. It's pathetic that so many people
lost money that will get it back. And you know, Bernie,
you might some of them. You might. By the way,
I love this guy, right, this is the this is
what I love about this home depot founder. You know,
Bernie Markets is getting older. He doesn't care to fit anybody,

(23:55):
he says. I think the assistant the administration has pushed
many of these banks into more in more concerned about
global warming than what they do for shareholder returns. And
these banks are badly run because everybody is focused on
diversity and all of the woke issues and not concentrating
on the one thing they should, which is shareholder returns,
instead of protecting the shareholders and their employees, the depositors. Right,

(24:19):
they're more concerned about social policies. And I think it's
probably a badly run bank. They've been there for a
lot of years. It's pathetic that some of people lost
their money won't get it back all. Right, Before I
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(25:46):
I want to go back to this story, he said.
Here's the other thing. Listen carefully. This is I get that.
It's a guy that has nothing to lose. To this point,
he's like, look, I've I've done my time and building companies.
I build home depot. You want to know what's really
going on. I don't care if I offend people, and
I love This is why you should listen sometimes to
your elders, because some of them have things to say

(26:08):
that other people won't take the risk of saying. And
he's got his money and he doesn't care, and he's
telling you the truth. And he said this. The FEDS
keep raising rates and inflation keeps going in the wrong direction.
It's not staying where it should be. People are struggling.
People can't pay their bills, they can't fill their tanks
with gas. And if you think that's a good sign,

(26:29):
I don't think it is. And we have an administration
that's ob twus to this. They keep talking about the
great times and how good it is. It's not. Somebody
with a saint head has to come and understand that
you can't do two things. Number one, you can't keep
raising rates referring to interest rates, and two, you can't

(26:51):
keep inflation as strong as it is, and you can't
tax people more than they are. His proposal, referring to
Biden's proposal tax the middle class and the riches about
as dumb as I've heard in a long time. In
a recession like this, you don't do things like that.
And by the way, Joe Biden said in the back
of the day on record, you don't raise interests or

(27:13):
you don't raise taxes when you're dealing with inflation. It's
the dumbest thing you can do. But now he needs
more money because he wants more control. That's what this
all comes down to, is the issue of control. That's
why he's saying it the way he is. But Bernie
Marcus just said it the way that it should have
been said, woke Silicon Valley Bank was more concerned about

(27:34):
global warming than shareholders returns and quotas. And he's right.
And if you think this is only in America, you're wrong,
because as you heard Janet Yellen say a moment ago
when I was playing that audio, the UK is now
mulling over the idea of a bailout for the tech
firms after the silicon collapse. Authorities in the UK are

(27:57):
considering a possible bailout for all the tech firms after
the collapse the British brands of Silicon Valley Bank. Jeremy Hunt,
the Chancellor, is reportedly mowing a possible bailout for tech
firms and startups that were affected by the collapse of
the Silicon Valley Bank UK. The failure of SVP represents

(28:17):
the second largest failure of a bank in US history,
only beaten out by the collapse of Washington Mutual during
the O eight financial crisis. According to the report by
the BBC, there is now significant fear about the knock
on effect the bank's collapse could have on startups in Britain,
with many firms set to lose large sums of money
after the Bank of England declared that SVP SVP UK

(28:41):
would enter in solvenc As a result, the Treasury is
now reportedly aiming to offset the damage done by the
bank's collapse, with Hunt telling the public broadcaster BBC that
authorities are considering various ways of recusing the tech firms
affected so another ball out. One such rescue plan involves

(29:02):
providing an emergency cast lifeline for companies hit by SVB
going under quote, we want to find a way that
ministries can help and avoid all the losses of the
incredibly promising firms. The Chancellor wrote, arguing that while the
impact of the United Kingdom's overall economy is expected to
be minimal, SVPs collapsed would nevertheless risk wiping out many

(29:25):
of the countries budding tech enterprises. So, in other words,
we're gonna pick winners and losers in different sectors, same
thing that they're talking about doing here. We like big tech,
we like tech firms, we like quote companies. We don't
want them to be hurt, so we'll just say, hey,
we're not going to allow them to be hurt, and

(29:45):
we like what they're doing, so we'll bail them out.
That's how we'll do this. We'll bail them out that way.
Does this sound like a very good idea or does
it sound like a disaster? To me, it sounds like
a disaster. Does it sound like something we should be
supporting or advocating for. No, it doesn't. It sounds again
like a disaster. Sounds like a terrible, terrible, terrible, terrible

(30:11):
terrible idea, something that should not happen. Yet here we
are having this conversation because there's a liberal bank with
a woke ideology. That's what it is. A liberal bank
with a woke ideology. They're gonna probably bail them out.

(30:31):
They're gonna prop them up, and they're gonna tell you
it's not going to cost you taxpayers dollars. And when
they tell you that, you need to understand they are
one thousand percent lying to you. This will cost you
some taxpayers dollars. Anyone that tells you that it's not
they're lying to you. They are lying to you. I'll

(30:52):
say it one more time. They are lying to you.
This is going to cost us all a hell of
a lot of money, all right. Lastly, please make sure
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(31:13):
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