Kevin O’Leary, host of ABC’s Shark Tank, appeared on the Fox Business channel this weekend to discuss the failure of the Silicon Valley Bank. He hilariously called the manager of the bank ‘an idiot’.
He also critiqued government response to the failure, stating that the idea of government bailouts will only encourage other banks to act more irresponsibly in the future.
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Newsbusters reported on the response…
Shark Tank star Kevin O’Leary bashed the federal bailout of Silicon Valley Bank depositors.
O’Leary explained his critiques on Fox Business’s Cavuto: Coast to Coast with host Neil Cavuto on Tuesdsay. Silicon Valley Bank (SVB) is one of several banks that collapsed last week. O’Leary accused regulators of taking an “isolated incident” and creating a “moral hazard” by applying it as an overall banking concern, guaranteeing deposits above the $250,000 Federal Deposit Insurance Corp. limit. He said when the next bank fails, the federal government should just “let it fail.” O’Leary would later state during a segment hours later on the Fox News Channel’s Hannity that SVB was “run by idiots.”
O’Leary told Cavuto he predicted “unintended consequences” from the bailout policy, such as signaling to banks that the Federal Reserve will rescue them no matter what.
“Going forward, I think a lot of bank managers are going to say, ‘Wait a second, I have no risk. I’m going to go crazy like those guys did at the Silicon Valley Bank and do stupid leverage things,” O’Leary insisted. “Because if anything goes wrong, as long as I stay within the baseball rules of banking, nothing can happen to me because the Fed covers all my depositors. I don’t have to worry if I’m crazy.’ That’s the problem we’ve got.”
“There’s going to be problems ahead here because, frankly, I don’t think just guaranteeing deposits is enough to keep everybody with all of their money in just the regional bank,” O’Leary said. “Even in our own portfolio, we have now moved our assets across five different financial institutions.” He predicted “all kinds of new regulations” for the regional bank system.https://newsbusters.org/blogs/business/catherine-salgado/2023/03/16/let-it-fail-shark-tanks-oleary-slams-silicon-valley
See that interview with Neil Cavuto and Kevin O’Leary below…
O’Leary did not hold back. His kind of thinking is exactly what we need in this Country. I think I am not alone in stating that I wish a businessman of his stature would run for political office and win.