Barstool Sports founder Dave Portnoy condemned President Joe Biden for moving to bail out failing financial group SVB Financial, parent of Silicon Valley Bank.
SVB, which has many prominent politicians and figures on its long client list, won’t be bailed out with taxpayer money, according to Biden. Still, Portnoy believes that the group’s state is a result of the roadmap that it followed as a business.
Nobody rescues me when I run out of money.”
“When banks fail, it’s a tough one, because, again, the average ‘Joe Schmo’ puts their money [in], I want to get their money back, but I don’t think banks should necessarily be rescued because you’re running a bad business,” Portnoy said in an interview with Fox Business Thursday. “Nobody rescues me when I run out of money.”
SVB is not the only bank facing a serious liquidity issue. Roughly $152.9bn was borrowed by institutions across the country during the traditional discount window that closed on March 15, well above the $111bn borrowed during the 2008 financial crisis.
The Federal Deposit Insurance Corporation (FDIC) is attempting to restore order by guaranteeing all deposits at SVB, which includes patrons with more than $250,000 in their accounts. The previous guarantee limit was capped at $250,000.
Portnoy is pleased that money is being guaranteed but believes that SVB’s real issue is the amount of risk it took on.
“They were basically attracting risky companies, startups, crypto companies. That’s their wheelhouse. And you have more risk when you do that,” told Fox host Stuart Varney. “I’m glad people are getting their deposits back because I don’t think the average Joe Schmo knows what they’re getting involved in.”