President Joe Biden jumped all over former President Donald Trump on Monday, blaming his rollback of some "tough" bank strictures for the stunning collapse of California's Silicon Valley Bank and New York-based Signature Bank.
In a Twitter thread, Biden lamented weakening protections set up after a 2008 financial crisis that left banks holding trillions of dollars of worthless investments in subprime mortgages.
"We must reduce the risk of this happening again," he wrote. "During the Obama-Biden Administration, we placed tough requirements on banks to make sure the crisis we saw in 2008 wouldn't happen again.
"Unfortunately, my predecessor rolled some of those back."
He also promised heads would roll — and bank investors will be on their own.
"The management of both these banks will be fired," he wrote, adding: "Investors in the banks will not be protected. They knowingly took a risk, and when risks don't pay off, investors lose their money. That's how capitalism works."
But Biden said "no losses will be borne by the taxpayer."
"We'll pay for it from the fees that banks pay into the Deposit Insurance Fund," he wrote.
"If a bank is taken over by the FDIC [Federal Deposit Insurance Corporation] the people running that bank shouldn't work there anymore," he wrote.
Biden also demanded "A full accounting of what happened and why so those responsible can be held accountable. In my Administration, no one is above the law."
"I will ask Congress and banking regulators to strengthen the rules for banks to make it less likely that this kind of bank failure happens again," he added.
Fran Beyer ✉
Fran Beyer is a writer with Newsmax and covers national politics.
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