Speaker of the House Kevin McCarthy plans to blame President Biden for the Silicon Valley Bank failure, even though he pushed hard for the 2018 deregulation.
Punchbowl News reported:
The House GOP conference held a private call to debrief with Speaker Kevin McCarthy, House Financial Services Committee Chair Patrick McHenry (R-N.C.) and Rep. French Hill (R-Ark.).
Based on that conversation, we expect the party’s response will go something like this – Democrats are responsible for the collapse of these banks. Their historic spending created historic inflation, which led to historic interest hikes that the banks weren’t ready to manage.
On the call, McCarthy blamed the Biden administration’s “failed” fiscal policies combined with rising interest rates for Silicon Valley Bank’s demise in particular. McHenry added that SVB’s collapse was “current social media meets the bank rush scene in ‘It’s a Wonderful Life.'”
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Here is McCarthy’s video touting the “Choice Act” which was the repeal of major parts of Dodd-Frank:
“#CHOICEAct could eliminate $10B 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 is what McCarthy said on the House floor on June 8, 2017:
“Repealing Dodd-Frank with the CHOICE Act lifts people back in so they can participate in America’s economy. It will reestablish the severed ties that link communities to the money they need to start businesses and hire employees. Bringing back the community banks that Dodd-Frank destroyed means that more people, not just the wealthy, will have access to credit.
“The CHOICE Act levels the playing field. It makes both Wall Street and Washington accountable so that their bad decisions don’t cost the taxpayers their money. And it makes things simple so that you don’t need an Ivy League law degree to understand the rules that govern our lives.
Kevin McCarthy is pretending that his pushing legislation that weakened the regulations that allowed Silicon Valley Bank to avoid oversight and stress tests. Kevin McCarthy promised that less regulation of banks would be great for everybody.
Joe Biden isn’t to blame for the collapse of Silicon Valley. Any political blame belongs to Kevin McCarthy and Donald Trump.
Jason is the managing editor. He is also a White House Press Pool and a Congressional correspondent for PoliticusUSA. Jason has a Bachelor’s Degree in Political Science. His graduate work 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