Biden administration policies are to blame for the collapse of Silicon Valley Bank, Sen. Tom Cotton told Fox News' "Sunday Morning Futures."
The Arkansas Republican, who sits on the Senate Judiciary Committee, said, "The failure of Silicon Valley Bank and the stress it's put on our banking sector and the economy really is Joe Biden's failures all the way down.
"It was Joe Biden's reckless spending that created runaway inflation, which led to higher interest rates, which put the squeeze on banks like Silicon Valley Bank," he said. "And it was Joe Biden's administration that didn't properly oversee and supervise a bank like Silicon Valley Bank six months ago or a year ago to make sure they were doing proper risk management of the interest rate spreads between deposits on the one hand and assets on the other hand."
Cotton called the decision to bail out SVB a double standard, saying, "It's obvious to everyone that Joe Biden would not have bailed out a bank in midland Texas that banked, almost exclusively, the oil and gas industry."
The senator also slammed the president's reluctance to help arrange a "shotgun wedding merger" (an emergency merger between two institutions vital to at least one of the companies struggling) between SVB and another, larger institution, saying of the Biden administration, "They're ideologically opposed to any kind of mergers."
Cotton said, "What we got instead was the Biden bank bailout — which will, in fact, be going to Chinese companies, because it's well known that Silicon Valley Bank was an access point for Chinese companies to get American money."
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