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Republican presidential candidate Nikki Haley condemned President Biden on March 13 for what she termed a “bailout” of Silicon Valley Bank, which failed late last week after regulators seized its assets and vowed to repay depositors.
“Joe Biden is pretending this isn’t a bailout. It is,” Haley said following news of the White House’s decision.
“Now depositors at healthy banks are forced to subsidize Silicon Valley Bank’s mismanagement. When the Deposit Insurance Fund runs dry, all bank customers are on the hook. That’s a public bailout.
“Depositors should be paid by selling off Silicon Valley Bank’s assets, not by the public. Taxpayers should not be responsible.”
The government acted late on March 12 to employ emergency steps to enable depositors access to their entire cash, drawing from the Deposit Insurance Fund—a fund sponsored by the banking sector—so that taxpayers will pay no losses, according to the president.
“No losses will be—and … this is an important point—no losses will be borne by the taxpayers. Let me repeat that: No losses will be borne by the taxpayers. Instead, the money will come from the fees that banks pay into the Deposit Insurance Fund,” Biden said on March 13.
