Sen Kennedy takes down Pres Biden for SVB bail out
In a speech before his colleagues, Sen John Kennedy Sen John Kennedy said that the bail outs of the three banks in US could have been avoided if any of the three things were done:
1 The investment strategy of SVB to invest in high yielding but interest rate sensitive bonds was non
banking 101;
2. The regulators had regular reports from the bank but failed to note the red flag and take proactive steps to prevent a bank run
3. SVB was an illiquid bank but a solvent one, but merely was unable to provide liquidity to those withdrawing because of parked funds at the bonds; the regulators could have by phone arranged for a buyer on Friday or Saturday so that a bail out was unnecessary (as what CSB did) But they did not.
Sen Kennedy decried the presence of underserving in the nation:
The large corporations get bail out
The masses get hand outs;
The middle class, the taxpayers get billed out
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