Former FDIC Chair Raises Alarm, Banking System Failures Far From Over
The Biden Administration is pushing for more spending, more government-funded projects, and even more reckless policies that could have devastating consequences for everyday Americans. Former FDIC chair William Isaac warned this week that inflation caused by the government’s irresponsible fiscal policies could lead to more bank closures.
“I do think there’s probably going to be more failures along the way. The problem we have is the same one that we had back in 1970s when the government was out of control with its fiscal policies, its monetary policies, inflation set in and banks were just not ready for that,” William Isaac, who chaired the FDIC during the Reagan administration, told Fox News host Neil Cavuto. “The thrifts were not, either. We wound up losing some 5,000 banks during that period.”
Indeed, the FDIC recently shut down Silicon Valley Bank and Signature Bank after their stock prices plummeted and customers began a bank run. As Isaac noted, the number of bank failures this time around is likely to be much smaller than it was in the 1970s, when the US saw the closure of around 5,000 banks due to irresponsible fiscal and monetary policies.
Unfortunately, the Biden Administration is refusing to take responsibility for their reckless spending and the damage it’s causing. Instead, the government continues to push for more spending, even as other banks such as Credit Suisse and First Republic are seeing their stock prices plummet.
The government needs to realize that their irresponsible policies are leading to inflation and more bank closures. They need to take responsibility for their actions and make sure that their policies do not lead to more economic hardship for everyday Americans.
Sadly, it isn’t just the government that is behaving irresponsibly. Financial establishments seem to be putting woke ideologies ahead of good business practices. Major banks such as JPMorgan and Goldman Sachs are now refusing to do business with companies that don’t comply with their woke standards.
We can’t have a healthy financial system if banks aren’t willing to do business with those who don’t share their political views. To make matters worse, these banks are also refusing to work with companies that don’t comply with their environmental regulations.
It’s time for the Biden Administration to wake up and realize that their reckless spending habits are leading to inflation and more bank closures. They need to take responsibility for their actions and make sure that their policies do not lead to more economic hardship for everyday Americans. Otherwise, we could be facing a financial crisis similar to what we saw in the 1970s.