On Friday, Silicon Valley Bank’s collapse, which is the second-largest bank failure in US history, caused concern throughout the financial system and the tech industry. However, on Sunday night, the Biden administration intervened to prevent a potential financial system crisis by announcing that all depositors would have access to all their money on Monday morning. Prior to the intervention, there were worries about whether companies would be able to retrieve their funds and pay their employees.
Despite being adamant that it’s not a “bailout” Joe Biden has said the federal government will make sure depositors at Silicon Valley Bank will have access to all their money, but is that just a gift to the wealthy? For more information, Lars speaks with Pete Earle, an economist with the American Institute for Economic Research.