Political Fallout of SVB Failure
We ran the numbers:
There are 6,404 news articles covering this topic.
24% (1,561) are left-leaning, 39% (2,469) are centrist, and 37% (2,374) are right-leaning.
On Monday, President Joe Biden reassured customers of American banks amid the financial panic surrounding the failure of Silicon Valley Bank. Left-leaning articles highlight the the Biden administration’s efforts ensured that SVB customers’ deposits are protected, while right-leaning articles highlight that Republican Senators are criticizing federal regulators for not anticipating the bank’s collapse.
NPR published a centrist article reporting that amid the collapse of Silicon Valley Bank, Biden tried to reassure bank customers that their deposits will safely remain. Despite his reassurance on Monday morning, stock prices of a number of banks dropped considerably. The Biden administration has also said that it will not use taxpayer funds to remedy the failure of SVB and that depositors will receive their money back. He also said that bank leaders will face repercussions for the bank failure and will not receive bailouts from the federal government.
A left-leaning article by The Washington Post highlighted that efforts by the Biden administration ensured that SVB’s customers’ deposits will be protected beyond the $250,000 insured by the FDIC. It also highlighted that SVB is not alone; state regulators had closed the Signature Bank of New York and protections will extend to its customers. In addition, the Federal Reserve is creating a new lending facility for the nation’s banks to shield them from financial risks in the wake of SVB’s collapse.
A right-leaning article by Fox News highlighted that Republican members of the Senate Banking Committee criticized federal regulators, claiming that they were not sufficiently aware or ready for a sudden collapse such as the one that SVB experienced. Sen. Cynthia Lummis (R-Wyo.), a member of the Senate committee, is one of the most vocal critics who accused the regulators of being “asleep at the wheel” and standing staunchly against any potential federal bailouts for banks—which the Biden administration has stated is not what will happen.