(TheLastPatriotNews.com) – The House Freedom Caucus — consisting of the most conservative and seemingly patriotic members of Congress — declared it’s against government bailouts for the banking industry, a position coming after the collapse of Silicon Valley Bank and Signature Bank.
The Freedom Caucus, which numbers 45 members among the 222 Republicans in the US House of Representatives, argued that the American taxpayer shouldn’t have to bail out banks that collapse because of the failure of government regulators.
“The House Freedom Caucus continues to stand for the forgotten men and women of America, and Americans are done with government bailouts — especially when caused by the government’s own policies, apparent regulatory failures, and clear management ineptitude,” the Freedom Caucus stated.
It insisted that President Joe Biden’s “rampant spending” and the Federal Reserve’s “mismanaged” monetary policy has set up the nation for a banking crisis beginning with the failure of Silicon Valley Bank, Breitbart News reported.
The House conservatives urged the Fed to terminate its “Bank Term Funding Program,” which seeks to guarantee that banks could meet depositors’ needs.
“Out-of-control spending in Washington and Federal Reserve interventions have fueled skyrocketing inflation,” the Freedom Caucus declared.
“Having mismanaged interest rate policy and their own balance sheet, the Federal Reserve reacted by rapidly increasing interest rates after keeping them artificially low for far too long. The Federal Reserve set the conditions for this crisis and out-of-control DC spending lit the fuse,” it elaborated.
“The Federal Reserve must unwind its extraordinary ‘Bank Term Funding Program’ as soon as possible. Any universal guarantee on all bank deposits, whether implicit or explicit, enshrines a dangerous precedent that simply encourages future irresponsible behavior to be paid for by those not involved who followed the rules,” the House conservatives argued further.
The Freedom Caucus also made it clear its members would oppose any efforts by Democrats to reverse the banking reform of the Trump administration. They insisted any banking crisis that may have started was caused by “the failure of regulators, not of regulations.”
The report points out that Democrats and Republicans have attacked the Federal Reserve Bank of San Francisco for failing to notice Silicon Valley Bank’s “risky structure,” as GOP US Senator Ted Cruz stated.
It is also noted that Biden’s Treasury Secretary Janet Yellen has admitted to a two-tier system in which large banks “get unlimited protections” from the government, which is not the case for smaller and community-sized banks.
“Look, I mean, that’s certainly not something that we’re encouraging,” Yellen stated recently in response to a question by Senator James Lankford (R-OK) during a Senate Finance Committee hearing.
She admitted further that larger institutions deposit their money with larger banks since those have government backing, while smaller banks get no government protection.
Yellen also raised eyebrows by saying Chinese investors connected with the Chinese Communist Party could be fully covered by the US government’s bailout of Silicon Valley Bank.
“Democrats want to make all banks’ too big to fail’ and will drive further consolidation in the financial sector. No bank should be ‘too big to fail,'” the House Freedom Caucus concluded.
What is your opinion? Do you agree or disagree with the House Freedom Caucus? Share your view by emailing [email protected]. Thank you.
The House Freedom Caucus said in a statement on Monday that they oppose bailing out the banking industry for what should be considered a failure of regulators not to see the coming crisis. https://t.co/Po4dZcsaJX
— Breitbart News (@BreitbartNews) March 20, 2023