House Speaker Kevin McCarthy plans to blame President Biden for the failure of Silicon Valley Bank despite pushing hard for 2018 deregulation.
Punchbowl News reports:
The House of Representatives GOP conference held a private debriefing call with Speaker Kevin McCarthy, House Financial Services Committee Chairman Patrick McHenry (RN.C.) and Rep. French Hill (R-Ark.).
Based on this conversation, we expect the party’s response to be something like – The Democrats are responsible for the collapse of these banks. Their historic spending created historic inflation, leading to historic rate hikes that the banks were unprepared for.
In the conference call, McCarthy blamed the Biden administration’s “failed” fiscal policy, coupled with rising interest rates, for the downfall of Silicon Valley Bank in particular. McHenry added that SVB’s collapse “in ‘It’s a Wonderful Life'” was “current social media meets bank rush scene.”
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Here is McCarthy’s video announcing the “Choice Act” which was the repeal of large parts of Dodd-Frank:
“#CHOICEAct could save $10 billion in annual regulatory costs and save 10.3 million hours of paperwork.” – @AAF https://t.co/KmoZZ9gt4w pic.twitter.com/tRgMFz0i4t
— Kevin McCarthy (@SpeakerMcCarthy) June 7, 2017
Here’s what McCarthy said in the House on June 8, 2017:
“The repeal of Dodd-Frank with the CHOICE Act puts people back in it so they can participate in America’s economy. It will restore the severed links that connect communities to the money they need to start businesses and hire employees. The return of the community banks destroyed by Dodd-Frank means more people, not just the rich, will have access to credit.
“The CHOICE Act levels the playing field. It holds both Wall Street and Washington accountable, lest their wrong decisions cost taxpayers money. And it makes things easy, so you don’t need an Ivy League law degree to understand the rules that govern our lives.
Kevin McCarthy claims his push for legislation weakened regulations that allowed Silicon Valley Bank to avoid oversight and stress testing. Kevin McCarthy promised less regulation of banks would be good for everyone.
Joe Biden is not to blame for the collapse of Silicon Valley. All political blame lies with Kevin McCarthy and Donald Trump.
Jason is the managing editor. He is also a White House press pool and congressional correspondent for PoliticusUSA. Jason has a bachelor’s degree in political science. His thesis focused on public policy with a specialization in social reform movements.
Awards and professional memberships
Member of the Society of Professional Journalists and the American Political Science Association