Pence: It’s disingenuous for Biden to say taxpayers won’t pay for bank ‘bailout’

Former Vice President Mike Pence slammed the Biden administration for what he called a “bailout” of the failed Silicon Valley Bank, arguing that it is “disingenuous” for federal officials to suggest that Americans will not pay for backstopping depositors.

“President Biden says taxpayers won’t pay for the bailout, but that is disingenuous – every American with a bank account will pay higher fees to replenish the billions spent by the (Federal Deposit Insurance Corporation) FDIC to backstop failing banks,” Pence said in an op-ed for the Daily Mail. 

While the FDIC insures each depositor up to $250,000, federal regulators announced that they would tap into a separate insurance fund paid into by U.S. banks to backstop all deposits, making sure that Silicon Valley Bank customers had access to their money.

The Biden administration insists that the backstop of deposits is not a bailout, saying bank executives and shareholders will not reap the benefits. However, Republicans including Pence and presidential candidate Nikki Haley have been quick to push back.

Pence laid the blame for the failure of Silicon Valley Bank and subsequent panic in the banking industry at the feet of the Biden administration. He said the administration’s “spending spree” pushed inflation rates higher, forcing the Federal Reserve to hike up interest rates. He also said that the administration encouraged the banking industry to make investment decisions based on an environmental agenda, pursuing “woke” projects.

“The bank boasted that it was ‘living its values’ by pursuing left-wing environmental, social and governance goals and donating millions of dollars to liberal nonprofits,” Pence said. “When interest rates went up, their long-term bonds imploded and SVB was left holding the bag.”

Proponents of backstopping the uninsured deposits saw the move as a way to ensure consumer confidence in the banking industry and stave off any deeper slide in the sector. Still, a number of regional banks at the start of this week saw significant drops in the share prices.

Ultimately, Pence said he was vehemently opposed to the “bailout”, arguing “no business is ‘too big to fail.’” 

“Government should no longer choose winners and losers,” Pence said. “Only then can we preserve a vibrant, healthy and flourishing free market.”