Critics are accusing Joe Biden of bailing out wealthy Democrat party donors with the Biden administration’s announcement this weekend that they are bailing out SVB.
With Silicon Valley Bank being primarily in the Democrat capital of the world, it’s a reasonable criticism.
After all we saw how quickly Joe Biden and his transportation secretary rushed to Palestine, Ohio when they had a massive toxic disaster on their hands.
Here’s more from NY Post:
The Biden administration’s move to protect customer deposits at Silicon Valley Bank is rankling critics who call it a gift to wealthy Democratic donors in the tech sector — even as mom-and-pop investors are getting burned in the deal.
While depositors including top-tier venture capital firms like Andreesen Horowitz and Sequoia Capital were bailed out, the equity and bondholders were completely wiped out as part of the rescue by state regulators and the Federal Deposit Insurance Corp.
Those included big mutual funds that operate retirements funds for working Americans. Vanguard Group owned nearly 11% of Silicon Valley Bank shares. Alecta Pension Insurance Mutual owned nearly 4.5%, and Franklin Mutual Advisers owned nearly 2%, according to public filings.
“You’ve saved the Democratic donors but who are the equity holders?” one tech insider noted. “Retirement funds bought into this… many are policemen, teachers, firemen just trying to retire.”
Ninety-eight percent of all political contributions from people who worked at internet companies went to Democrats in 2020, according to data from the Center for Responsive Politics.
Another estimate from a GovPredict analysis of Federal Election Commission data showed that people living in counties considered to be Silicon Valley gave nearly $200 million to Democrats.
“This is a bailout… and the account holders they bailed out are Democrats,” a tech insider told The Post, though he qualified the statement by noting the consensus view that the federal government did the right thing by pledging to make depositors whole.
“Silicon Valley Bank is the bank of the Democrats …. they’re looking after their own,” he added. “If it was the Bank of MAGA, what are the chances it would be bailed out? There’s not a chance in hell.”
Hard to argue with that logic. Even if this were simply a Trump-owned bank, you can believe it would have been treated very differently.
There’s no doubt that the Biden administration puts politics above everything – even toxic that pollute air and water. And you can be sure that the same politics is at play with SVB.