Biden Effect: Biden Has Presided Over Three Of The Four Largest Bank Failues In US History
The Biden administration’s economic agenda is not working.
Three of the four largest bank failures in US history have happened under Joe Biden.
First Republic Bank ($212 billion), Silicon Valley Bank ($209 billion), and Signature Bank ($110 billion).
President Biden has now presided over three of the four largest bank failures in U.S. history and experts are warning the Federal Reserve’s interest rate regime could lead to additional problems across the sector.
Since March, three major banks — First Republic Bank, Silicon Valley Bank and Signature Bank which had assets worth $212 billion, $209 billion and $110 billion, respectively, according to Federal Reserve data — have imploded in the wake of high interest rates and poor management decisions. The Federal Deposit Insurance Corporation (FDIC) has estimated its actions to resolve the failures will cost taxpayers about $36 billion.
“The Federal Reserve, the Treasury, this entire administration, frankly, has been very inconsistent with their operations in financial markets,” E.J. Antoni, an economist and research fellow at The Heritage Foundation, told Fox News Digital in an interview. “So they will do one thing in one instance and then something completely different in the next.”
“However, if this last episode is any indication, as the federal government gets increasingly desperate in this banking crisis, as the crisis continues to escalate, what we’re seeing is an increasing willingness to basically use taxpayer money to bail out these institutions,” Antoni added.
The largest ever was in 2008.
The failures of SVB, Signature and First Republic mark three of the four largest failures of a federally insured bank ever. The largest, Washington Mutual, crashed at the start of the Great Recession in 2008. Since 2001, more than 500 banks have failed, but the vast majority were in the wake of the Great Recession, Federal Deposit Insurance Corp. data shows.
Recent bank failures have paled in comparison to today’s closures. Two banks that failed in the fall of 2020 totaled just over $200 million. At the end of March, First Republic had nearly $200 billion in assets.