The Federal Deposit Insurance Corporation (FDIC) announced the closure of Silicon Valley Bank (SVB) on Friday, marking the worst U.S. financial institution failure in nearly 15 years. The closure of the 16th largest bank in the United States has spurred a warning from Home Depot co-founder Bernie Marcus.
Marcus argued that the Biden administration is more concerned with “global warming” than shareholder returns, which has led to the collapse of the bank. He believes that the U.S. economy is already in a recession and that the Biden administration is not taking it seriously. He also blamed the bank officials for selling off their stock before the news of the closure was made known.
“I think that the system, that the administration has pushed many of these banks into [being] more concerned about global warming than they do about shareholder return. And these banks are badly run because everybody is focused on diversity and all of the woke issues and not concentrating on the one thing they should, which is, shareholder returns,” Marcus said.
The closure of SVB has been attributed to anxious depositors rushing to withdraw money over concern for the bank’s health. Marcus believes that the bank was badly run due to the focus on “woke issues”, such as diversity and global warming, instead of shareholder returns. He also believes that the Biden administration’s proposal to tax the middle class and the rich is “as dumb as [he’s] heard it in a long time” and that it is not the right way to address the current economic problems.
“I feel bad for all of these people that lost all their money in this woke bank. You know, it was more distressing to hear that the bank officials sold off their stock before this happened. It’s depressing to me. Who knows whether the Justice Department would go after them? They’re a woke company, so I guess not. And they’ll probably get away with it,” he said to host Neil Cavuto.
The closure of Silicon Valley Bank is an example of the economic problems that many Americans are facing. The economic issues are not being taken seriously enough by the Biden administration, according to Marcus, and taxpayers are being asked to pay more in taxes. This is causing more economic uncertainty and insecurity among everyday Americans.
“The Fed keeps raising rates and inflation keeps going in the wrong direction. It’s not staying where it should be. People are struggling. People can’t pay their bills. They can’t fill their tanks with gas. And if you think that’s a good sign, I don’t think it is. And we have an administration that’s obtuse to this. They just keep talking about the great times and how good it is. It’s not good,” Marcus concluded.
