Former UBS CEO Robert Wolf is sounding the alarm at the bewildering decline of Silicon Valley Bank – one of the country’s largest banks – and warning Americans that the US economy is weathering “rough times”.
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“This is considered unbelievable. Yes, this is a tough time, but this is nothing like Lehman. Lehman was a contagion that spread across the globe. This is nothing like that. It’s definitely going to cause a lot of anxiety.” argued during an appearance on Fox & Friends Weekend.
“I believe one of two things will happen. First, either someone — like a JPMorgan Chase — comes over the weekend and buys Silicon Valley Bank because it’s a great bank to buy. It’s very unique to this type of venture company that you’re going to be able to do banking,” Obama’s former economic adviser explained. “Second, the FDIC will do something they never actually do. FDIC insurance, sorry to renew it, is only insured up to $250,000…but there’s enough coverage here to give all depositors 50% to 75% of their money right away.
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The closure of Silicon Valley Bank (SVB) was announced by the Federal Deposit Insurance Company (FDIC) on Friday, marking the worst collapse of US financial institutions in nearly 15 years.
SVB was the 16th largest bank in the United States as of Friday afternoon. It failed after concerned depositors rushed to withdraw money, concerned for the health of the bank.
FOX Business senior correspondent Charlie Gasparino released his own analysis of the economic implosion during an earlier appearance on Fox & Friends Weekend on Sunday.
“This is a warning sign of how screwed up the installations in our banking system – our economy – are.”
Backing up the former UBS CEO’s claim, Gasparino argued that the collapse of Silicon Valley Bank was a distressing sign that the US banking system and economy were in jeopardy.
“I think that’s something that affects all Americans, and it’s a warning sign of how screwed up the installations are in our banking system, our economy. Let’s rewind the videotape a little here. You know, we’ve been printing money from the Federal Reserve for years – way too much. Even as we emerged from the pandemic, the Biden administration was spending heavily. You do stuff like that, you mess with the economy like that,” he told co-host Pete Hegseth.
“They mess around with the economy like we do, do really stupid stuff, Joe Biden spends all that money when he didn’t have to. When we were out of the pandemic, the Fed just kept interest rates low and printed money. If you do that, you will get inflation. If you get inflation, you will raise interest rates because inflation is terrible. It destabilizes societies, economies. When it comes down and when you deal with it, well, guess what? You’re going to have these kinds of glitches. That’s a warning sign that there may be more to come,” Gasparino concluded.
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Aislinn Murphy of FOX Business contributed to this report.