Biden and Yellin Bank Bailouts: China Can Go to the Head of the Line and Americans Can Go to Hell

Joe Biden has proven once again that he is wholly owned by China. Silicon Valley Bank will be receiving a 100% bailout. Coincidentally, SVB was the go-to bank for Chinese tech companies. They stood to lose a bundle after the bank collapsed, but Joe Biden rode to the rescue of the rich and the Chinese. He has announced that you, the taxpayer will make up the losses the rich and Chinese would have suffered. Not just the $250k but every penny they would have lost by making bad choices.

Janet Yellin was asked if Biden would be bailing out all banks that go under and she answered no. She said that Community banks in rural areas would not be bailed out. She said a mouthful since SVB was in liberal California and small community banks are located in red areas. Biden has already shown his true colors by not adequately taking care of the people in East Palestine because they vote for the wrong party.

Sen. James Lankford (R-OK) questioned Yellen about whether uninsured deposits at community banks in his state. Yellen replied that a bank “only gets that treatment” if supermajorities of board members at the FDIC and Federal Reserve, as well as she and President Joe Biden, decide that “the failure to protect uninsured depositors would create systemic risk and significant financial and economic consequences.”

Lankford noted that such an approach to deposit insurance will drive larger depositors to move their money to the Democratic banks that donate large amounts of cash to the Democratic Party:

“We have seen the mergers of banks over the past decade. I am concerned you are about to accelerate that by encouraging anyone who has a large deposit in a community bank to say, ‘We are not going to make you whole, but if you go to one of our preferred banks, we will make you whole.’”

From The Daily Wire

When Yellen said that her agency and other financial regulators are by no means attempting to push large depositors away from small banks, Lankford responded that the phenomenon is “happening right now” because “you are fully insured, no matter what the amount is, if you are in a big bank,” while “you are not fully insured if you are in a community bank.”

Yellen, originally scheduled to testify on the budget proposal submitted last week by the White House, started her remarks by informing lawmakers that the Treasury Department, the Federal Reserve, and the FDIC successfully protected all deposits at Silicon Valley Bank and Signature Bank. The assets for account holders at both defunct financial institutions were provided by the Deposit Insurance Fund, which is funded by fees on banks.

Lankford also expressed concern that community banks in Oklahoma would be forced to pay an additional special assessment to protect the deposits of the “large number of Chinese investors” and “companies directly connected to the Chinese Communist Party” who had accounts at Silicon Valley Bank. Yellen confirmed that all uninsured investors “will be made whole in that bank,” including foreign depositors, since there is no “legal basis to discriminate among uninsured depositors.”

Sen. Marco Rubio (R-FL) raised similar concerns in a letter to Yellen which noted that Silicon Valley Bank had partnered with Shanghai Pudon Development Bank to finance startups in China. The lawmaker requested information regarding whether Chinese depositors can “expect to receive federal reimbursements from the Deposit Insurance Fund and other federal relief.”