Congressman blames Biden for US banking crisis

US Congressman from the Republican Party Paul Gosar on March 16 called the crisis in the country’s banking sector a consequence of the economic policy of President Joe Biden.

“President Biden’s economic policies created the conditions that led to Silicon Valley Bank’s (SVB) heavy losses and ultimately bankruptcy,” he said in an interview with ‘RIA News’.

Gosar called the president’s economic decisions “bidenflation,” as a result of which the Fed raised interest rates. As they rose, the value of SVB securities and bonds plummeted.

In addition, the legislator questioned the future actions of the US authorities, who are rescuing the heads of millionaire banks who have earned huge profits from the poor management of their financial structures.

Earlier, on March 13, US President Joe Biden tried to convince American citizens that they could be confident in the security of the country’s banking system. He vowed to ask Congress and “banking regulators to tighten rules on banks and reduce the risk of this kind of bank failure happening again” and to protect jobs and small businesses in the country.

On March 11, it became known about the bankruptcy of Silicon Valley Bank in the USA. The organization went bankrupt in less than two days. After the bank made an unsuccessful operation with securities, depositors began to withdraw funds sharply from their accounts.

A day earlier, the American edition of AxiosA noted that the Biden administration would soon face a crisis in the banking system.

On March 13, it turned out that the US authorities were not considering buying out Silicon Valley Bank. Treasury Secretary Janet Yellen noted that the current situation is different from the financial crisis of 2008, when the government bailed out many banks to protect the country’s economy.

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