House Assistant Democratic Leader James E. Clyburn, D-S.C., sounded off on 'Your World' following the collapse of Silicon Valley Bank in California.
to that of the George W. Bush administration and Congress following the 2008 collapse of Bear Stearns, Lehman Brothers and other financial institutions.
"We basically stepped in to bail out the banks [in 2008]. This administration is not bailing out anybody," he said."You know what they are doing and the way they're doing it is to protect everybody." Host Neil Cavuto pressed Clyburn on the claim, pointing out Biden is"bailing out people with FDIC backing; limitless… setting a precedent here that calls for protecting investors out fully or depositors out fully."
Cavuto noted if the new apparent standard is played out with more and more collapsed banks in the future, it could become overly expensive.Clyburn agreed to the excessive expense, but reiterated he does not consider what happened to SVB a bailout. Congress gets involved in a bailout, Clyburn argued; with SVB, a process"was put in place with the FDIC [who is] there in order to protect the banks – and those depositors are being protected.
The lawmaker also noted the FDIC insurance threshold was once $50,000, and suggested the current $250,000 threshold should also be lifted based upon the"times within which we live."
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