Arkansas Sen. Tom Cotton, R., took a jab at the Biden economy during “Sunday Morning Futures,” alleging policies implemented under the current administration are to blame for the infamous collapse of Silicon Valley Bank that left markets scrambling earlier this month.
“The failure of Silicon Valley Bank and the stress it’s put on our banking sector and the economy really is Joe Biden’s failures all the way down,” he told Fox News anchor Maria Bartiromo.
“It was Joe Biden’s reckless spending that created runaway inflation, which led to higher interest rates, which put the squeeze on banks like Silicon Valley Bank, and it was Joe Biden’s administration that didn’t properly oversee and supervise a bank like Silicon Valley Bank six months ago or a year ago to make sure they were doing proper risk management of the interest rate spreads between deposits on the one hand and assets on the other hand,” he said.
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Cotton, who sits on the Senate Judiciary Committee, alleged the Biden administration would host a double standard when selecting which banks to bail out, criticizing the decision to bail out Silicon Valley Bank while arguing that banks with clienteles largely rooted in the oil and gas industry would have been treated differently.
“It’s obvious to everyone that Joe Biden would not have bailed out a bank in midland Texas that banked, almost exclusively, the oil and gas industry,” he said.
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He later delved into critiquing Biden’s reluctance to help arrange a “shotgun wedding merger” (an emergency merger between two institutions consequential to at least one of the companies struggling) between Silicon Valley Bank and another, larger institution, saying, “They’re [the Biden administration] ideologically opposed to any kind of mergers.”
“What we got instead was the Biden bank bailout which will, in fact, be going to Chinese companies because it’s well-known that Silicon Valley Bank was an access point for Chinese companies to get American money…” he said.
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Sen. Cotton is far from the only right-wing critic blasting the Biden administration for allegedly creating unstable grounds that ushered in the bank’s collapse.
Former United Nations Ambassador Nikki Haley warned against bailing out the bank in a March 11 tweet, writing, “Private investors can purchase the bank and its assets. It is not the responsibility of the American taxpayer to step in. The era of big government and corporate bailouts must end.”
Former President Donald Trump’s team also ripped “out-of-control” Democrats for spinning the blame for the collapse, among other problems the country continues to face, in a statement to Fox News Digital.
“Out-of-control Democrats and the Biden administration have pathetically continued to try to blame President Trump for their failures with desperate lies, such as the CCP (Chinese Communist Party) spy balloons, the train derailment in East Palestine and now the collapse of SVB,” the statement read.
Liberals, meanwhile, blasted the former president for signing a bipartisan law rolling back some elements of the Great Recession-era Dodd-Frank law in 2018.