Senator says ‘see what happens’ before considering Silicon Valley Bank bailout

Senator Mark Warner, a member of the Senate Banking Committee, has called for caution before considering a bailout of Silicon Valley Bank (SVB), the largest bank to fail since 2008. Speaking to Martha Raddatz on “This Week”, Warner suggested that an acquisition of the bank may be a better solution than a bailout. SVB’s collapse came after depositors withdrew their money over concerns about the bank’s health. Warner called on the Federal Deposit Insurance Corporation to move as aggressively as possible to mitigate the fallout from the bank’s collapse.

Warner expressed concern that people with deposits in mid-sized banks over the $250,000 insurance limit could move that money into larger banks, leading to further consolidation. However, he cautioned against a bailout as a possible solution, with Treasury Secretary Janet Yellen stating that the reforms put in place after the 2008 financial crisis meant that bailouts of large banks would not be repeated.

Warner’s 2018 vote rolling back banking regulations, including those on banks the size of SVB, was questioned by Raddatz. Warner defended the vote, stating that it put in place an appropriate level of regulation on mid-sized banks and that such banks needed some regulatory relief.

Warner, who is also the chair of the Senate Intelligence Committee, has introduced a bill allowing the White House to regulate foreign-owned apps, including TikTok. Warner expressed concern about the Chinese-based parent company of TikTok and the data security of the app’s 100 million American users. He suggested that TikTok could be used as a propaganda mechanism for the Communist Party of China and that this was a national security concern. The bill has drawn support from bipartisan senators and the Biden administration.

---

---

Follow us on

---

(We don't allow anyone to copy content. For Copyright or Use of Content related questions, visit here.)