The SVB bailout which protected tech companies, including Chinese, by turning the FDIC $250K limit at which deposits are insured into an endless blank check, led to proposals to raise the FDIC limit.
Including a pretty high limit from Senator Elizabeth Warren.
“I think that lifting the FDIC insurance cap is a good move,” Senator Elizabeth Warren, a Democrat, said on CBS’s “Face The Nation” program, referring to the Federal Deposit Insurance Corporation’s current $250,000 limit per depositor.
Asked what the new, higher level should be, Warren, a member of the Senate Banking Committee, said: “This is a question we’ve got to work through. Is it $2 million, is it $5 million? Is it $10 million? Small businesses need to be able to count on getting their money to make payroll, to pay the utility bills.”
Watch out “small businesses”. Socialists aren’t offering you $10 million in FDIC insurance out of the goodness of their little red hearts.
Senator Elizabeth Warren said Tuesday she doesn’t think multibillion-dollar banks should get an increase in federal insurance without tighter regulation.
“You bet I’d tie them together,” the Massachusetts Democrat told reporters at the Capitol.
She warned against simply giving bankers two years of unlimited Federal Deposit Insurance Corporation protection without tougher restrictions in the wake of the failures of Silicon Valley Bank in California and Signature Bank in New York.
“That just puts the taxpayer on the hook and puts even more distortions in the incentives and we can’t do that,” she said.
Now the “made whole” gang is suddenly admitting that the woke capital bailout is hurting taxpayers.
Senator Warren wants to put ‘taxpayers on the hook’ by offering a poisoned chalice, using taxpayer money to hook banks, and then tighten control over them with the endgame being what her ally and Biden nominee, the Soviet-trained economist Saule Omarova, proposed, the elimination of private banking.
It’s one way to destroy capitalism and it’s been the consistent plan of socialists in the United States. They offer bailouts and subsidies, and then use them to tighten control and seize control over the industry, integrating it with the government.