Sorry. I missed the party memo. It’s not a “bailout”, they’re being “made whole”.
In my SVB article, I noted the presence of Chinese capital in the bank. One reason for that is that SVB had limited guardrails for Chinese money.
One of SVB’s major client bases was in China. Chinese companies were able to open an account in a week while “mainstream traditional banks, such as Standard Chartered, HSBC, Citi have strict compliance and it takes a long time to start a bank account with them.”
It’s unclear how many of these Chinese businesses, some likely linked to the Communist Party, Biden has chosen to bail out at the expense of bank customers and while further feeding the inflation that is destroying American families and wiping out the remains of the middle class.
Silicon Valley Bank also maintained a joint venture with China’s Communist state owned Shanghai Pudong Development Bank which has been under investigation for aiding North Korea’s nuclear program meant to kill millions of Americans.
Now, Biden’s Treasury Sec Janet Yellen confirmed that Communist Chinese capital will also get bailed out.
Sen. James Lankford of Oklahoma grilled Fed Chair Janet Yellen, demanding to know if Chinese bank depositors would be among those “made whole” by the Federal Reserve in the wake of the Silicon Valley Bank failure.
Lankford specifically asked whether companies directly related to the Chinese Communist Party (CCP) would see their deposits in SVB refunded in full by the US government as part of the rescue.
“What I’m asking,” Lankford said, “is will my banks in Oklahoma pay a special assessment to be able to make Chinese investors whole?”
Yellen answered in the affirmative, saying: “Uninsured investors will be made whole in that bank and I suppose that could include foreign depositors, but I don’t believe there’s any legal basis to discriminate among uninsured depositors.”
There’s no legal basis to “discriminate” between bailing out American businesses and foreign ones, let alone enemy ones? But there’s a legal basis for forcing Americans to pay higher fees to bail out China.
I just hope there’s 10% in it for the big guy. We wouldn’t want Americans who are struggling to survive be bled by woke capital on behalf of China for nothing.