So, once again, Biden has resorted to blaming the bad orange man for something that happened on his watch.
Once again, I am going to debunk that garbage claim because there is simply no way that Donald Trump has any responsibility whatsoever for what happened.
As one would suspect, this was sleight of hand by Biden to cover up what really happened.
What Happened
After the Silicon Bank collapse, Biden could not point the finger at Trump quick enough, reports the LA Times.
In 2018, Donald Trump signed the Truth in Lending ACT (TILA) that addressed the frustrations of some small and medium-sized banks as well as local credit unions.
The text of the bill stated that it "amends the Truth in Lending Act (TILA) to allow a depository institution or credit union with assets below a specified threshold to forgo certain ability-to-pay requirements regarding residential mortgage loans," reports Just the News.
Under the law, "those requirements are waived if a loan: (1) is originated by and retained by the institution, (2) complies with requirements regarding prepayment penalties and points and fees, and (3) does not have negative amortization or interest-only terms." In addition to those waiver conditions, "the institution must consider and verify the debt, income, and financial resources of the consumer."
This, by the way, was bipartisan legislation.
Biden stated that he and Barack Obama put "tough requirements on banks like Silicon Valley Bank and Signature Bank, including the Dodd-Frank Law, to make sure the crisis we saw in 2008 would not happen again."
He then stated, "Unfortunately, the last administration rolled back some of these requirements. I'm going to ask Congress and the banking regulators to strengthen the rules for banks to make it less likely that this kind of bank failure will happen again and to protect American jobs and small businesses."
So, everything Biden suggested that caused this banking collapse was completely bogus.
Not only that, there were warning signs of the collapse that this administration failed to address, which there is a reason why, which I will get into in a second.
First and foremost, even though losses were mounting for the bank, it continued to dump money into woke investments. For instance, the bank had committed $5 billion in new green tech outlays. It did this even though the signs showed the market was going the wrong way.
In July, SVB was boasting about its diversity, but investors wanted answers on why they had lost eight percent of their account value in only a month. J.P. Morgan official Steve Alexopoulos, during that meeting, asked, "So if we look at the $137 million of investment losses, which are detailed on Page 7, that declines a bit more than we've seen in other periods, right, is over 8%, typically you're like 2% to 3%. Can you walk us through the three buckets, so we can understand that a bit better."
Joel Griffith, a financial fellow at the Heritage Foundation, stated, "We knew it was financially mismanaged, but oh my gosh, this is probably the most woke bank in existence of mankind — or it was the most woke bank.
"We should recognize the primary cause of this bank going belly up was just gross financial mismanagement. They took depositors' money, and they put this in long-term debt investments at record low-interest rates, and as any financial risk manager knows, if you have interest rates that increase, the value of those debt assets are actually going to decline."
Also, keep in mind, the powers that be were all big-money Democrat donors, so there is no way Biden was going to do anything to call them out.
Secondly, according to Kevin Hassett, a former chairman of the Council of Economic Advisers, offers were made to buy the bank, but Biden's FDIC blocked them.
He stated, "I have heard it from people I have a great deal of faith in that were very close to the situation that there were buyers who were willing to step in and buy the bank and that the radicals at the FDIC basically weren't going to allow that to happen.
"I even heard again someone told me this directly that was close to the situation, that the Biden administration had a whitelist of companies were allowed to buy the failed bank and companies that weren't."
The reality is that the bank was mismanaged and bought into the leftist agenda rather than actually making money to gain favor with Democrats.
Larry Kudlow dives into this a little more, also stating that Donald Trump had nothing at all to do with this bank collapsing…
So, once again, Joe Biden goes on national TV and blatantly lies to the American people to deflect blame to the Trump administration.
The bad orange man had nothing at all to do with this.
