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Fox Business Host Charles Payne Rages On Live Air Over Silicon Valley Bank Bailout

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2 years ago

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Charles Payne, a well-known American journalist, commentator, and analyst who specializes in financial news and the stock market, went off today about the banking crisis.

Payne is the host of “Making Money with Charles Payne,” a daily financial news show on the Fox Business Network. Payne is also a contributor to Fox News and Fox Business, and his insights on finance and the economy are widely respected.

Payne explained, “We had over a thousand IPOs, 59% of offerings, 59% was SPACs. 90% of them were pure crap. The others all went out overvalued. Everyone who bought them at the IPO price, every American is losing money right now, even before this crisis. In the meantime, though, all that money went to Silicon Valley Bank. Their deposits went up 300% to $200 billion. The average bank over that same time frame, their deposits went up 35%.”

Silicon Valley Bank’s collapse on Friday marks the second largest bank failure in the US, but there will be no federal bailout for the stricken bank, according to Treasury Secretary Janet Yellen. The depositors will have access to all their money, and no losses will be borne by taxpayers.

“This is another bailout of the elites. This is a bailout of Silicon Valley, the same Silicon Valley that just brought a Sam Bankman-Fried. The Silicon Valley that for 20 years grew companies privately to exorbitant valuations, outrageous valuations, and then foisted them on the public at even higher valuations. They have made so much money. I mean only the Saudi Arabian princes can deal with the amount of money that they’ve made.”

WATCH:

free hat

Wall Street opened Monday with regulators halting trading on some of the nation’s largest banks as a hangover from this weekend’s calamitous collapse of two banks threatened to bleed into a second week.

Action by the New York Stock Exchange comes on the heels of premarket trading that saw a 67% fall in the price of First Republic Bank, based in San Francisco — ground zero for the recent collapse of tech-focused Silicon Valley Bank.

Other banks affected by the freeze include Western Alliance Bancorporation which saw a spectacular 75% decline in its stock Monday morning:

In a bid to stanch the crisis’s spread, President Joe Biden on Monday morning promised new regulations for the banking industry though left unspecified what they might be. Biden guaranteed all clients of SVB and Signature Bank, which were overtaken by regulators in recent days, would have immediate access to their funds. The president left the room without addressing questions about if the feds would make depositors whole at other affected banks.

The runs on both SVB and Signature led to the largest collapse of private banking institutions since the collapse of the financial housing market in 2008. As lending institutions like Lehman Brothers faltered or disappeared overnight, the federal government implemented a historic bailout program for banks that ultimately cost taxpayers $700 billion. The collapse precipitated the Great Recession across global markets and left 15 million Americans out of work and 8.6 million jobs decimated.



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