Biden criticized for Silicon Valley Bank: Is Washington saving the tech millionaires?

new York After the rapid rescue of the Silicon Valley Bank, criticism of the Biden government is getting louder. Many Republicans accuse US President Joe Biden of primarily helping rich tech millionaires in Silicon Valley with his rescue package. Among the Democrats, on the other hand, Wall Street critics like Elizabeth Warren are calling for more regulation and higher penalties for responsible managers. According to media reports, the SEC and the Department of Justice want to initiate investigations into the collapse of the Silicon Valley Bank.

The Silicon Valley Bank was in crisis within a few days because too many concerned investors wanted to withdraw their money. The reason for their concern was that the bank had lost billions, mainly because of its investments in long-dated government bonds, and needed new capital.

It was the biggest collapse of a bank since the financial crisis of 2008. Politicians and investors were concerned that the crisis could have wider repercussions, as it did after the collapse of the investment bank Lehman Brothers.