Brooks: SVB Got Special Treatment Because It’s in Silicon Valley

On PBS NewsHour on Friday, The New York Times Columnist David Brooks argued that the federal government would not have moved so quickly if the SVB was located outside of Silicon Valley and the federal government acted so quickly because people had “created a narrative that ‘may not be true’ that this medium-sized bank, if If it collapses, the entire economy will collapse.” and “If I were a populist, I’d jump on all this thing, because the Silicon Valley bank was bailed out? Really? It seems tailor-made for our friend Donald Trump.”

Brooks stated,[W]Would we have been so quick to act if this had been called the Monongahela Valley Bank, and not the Silicon Valley Bank? And my answer would be no, that the venture capitalists who invested in this bank and who — the people who invested put money into this bank, created a narrative that this midsize bank, if it ever went under, the whole economy would go from underneath. And once they established that narrative — which I think may not have been true — then the Feds had to act one way or another. And so, if I were a populist, I’d be jumping all over the place, because the Silicon Valley bank was bailed out? truly? It seems tailor-made for our friend Donald Trump.”

He follows Ian Hanchett on Twitter @employee

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