According to Postma, US politicians reacted with shock to the fall of Silicon Valley Bank. The San Francisco bank was forced to close its doors on Friday after a bank run ensued and many depositors withdrew all their money from the bank at once.
Open nerve
According to Postma, the fact that the American president chooses not to mince words is because the 2008 financial crisis is still etched in the memory of many Americans. “That is still a raw nerve for many Americans, with the feeling that the banks have been helped with citizens’ money,” Postma explains.
“This is Biden’s way of saying whoever caused this has been investigated. Even the American president wants to reassure with his ‘him’ speech. This is in view of the reopening of the stock market. The White House will later present new measures to strengthen the banking system.
relaxations
When it comes to political accountability, Biden appears to want to blame former President Donald Trump, according to Postma. Democrats say rules for banks have been relaxed under the Trump administration. Shortly after the financial crisis, stricter rules were introduced in America to prevent a recurrence. Trump later introduced the Reform Act, which again loosened many rules.
Postma says Biden wants to reverse these easing. What exactly that means, according to the American correspondent, is still unclear. “I don’t know if there is enough support in Congress to make these rules even stricter. But Biden will point out that the tougher measures were there for a reason. According to Postma, it will end in a political game.
rescue
Republicans define government aid to the bankrupt bank as bailout (rescue by the government of a company in financial difficulty by granting loans at low interest rates, ed), which immediately evokes the feeling of unease, sa Postma.
“Both parties are turning this into a populist, political story”
Republicans say when help was recently needed in the eastern Palestine city after a train crash, Biden was unwilling to give any money. Now the rich bankers are in trouble and help is being provided.’ Both parties therefore turn against each other and, according to Postma, turn it into a “political and populist story”.