March 19, 2023 at 11:00
FOX Business host Charles Payne joined "Life, Liberty & Levin" to analyze the collapse of Silicon Valley Bank and the ensuing bailout of sorts from the Biden administration to its depositors via the FDIC.
Payne rejected the theory former President Donald Trump's actions toward slackening regulations to relieve pressure on community banks had anything to do with SVB's collapse.
He argued that instead it was an institution largely serving America's wealthiest investors that made unwise, long-term investment decisions in T-bonds and other instruments itself.
"The last big financial crisis we had, a lot of rules were put into place and they were onerous rules — they were just too strict," Payne said.
Banks, we want to lend money.
Well, they were so rough and so onerous on small banks, they couldn't lend money."
"Why have a community bank if it can't lend money to the community?"
"So now instead of $50 billion, [SVB] had almost $200 billion," he said.
They were never a bank to lend money.
Payne noted the bond market had one of its worst years in history in 2021, which crushed the bank's balance sheets.
CLICK TO GET THE FOX NEWS APP"On paper, they had losses, they couldn't meet their obligations, hence they were bailed out, not the bank.
Technically, Silicon Valley was bailed out again after ripping off the American public for the last 20 years with overvalued IPOs and so-called SPACs."