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Sen. Ted Cruz (R-TX) attacked the Biden administration’s rescue of Silicon Valley Bank this week, warning that it could push banks to engage in future criminal behavior.
Cruz made the remarks on his podcast “Verdict” with co-host Ben Ferguson on Wednesday, when analyzing the impact of the bank’s failure on the United States.
“They were gambling that the Fed would not raise rates even though they’d been screaming from the mountaintops that they were going to raise rates,” Senator Cruz stated.
“A bank that is being prudent can hedge its investments against interest rates rising by investing also in counterbalancing investments that will go up when interest rates go up. They didn’t do that! They were focused on virtue signaling. They were focused on showing just how woke they are.” He continued.
“These bank officers were bad actors,” Senator Cruz also said.
“Let me let me tell you two data points that have been vastly under reported. Number one, hours before the bank was shut down Silicon Valley Bank gave very substantial bonuses to all of its employees. They just began writing checks to everyone hours before they were shut down. Data point number two: in the two weeks prior to their being shut down, the CEO and the CFO sold large amounts of stock. The CEO ended up making over a $2 million profit from selling stock less than two weeks before the bank was shut down. Both of those indicate corrupt intent.” The Texas Senator Stated.