A bipartisan majority of Americans oppose U.S. taxpayers footing the bill when bad management causes a bank to fail, a Reuters/Ipsos poll completed on Wednesday found.
A bipartisan majority of Americans oppose U.S. taxpayers footing the bill when bad management causes a bank to fail, a Reuters/Ipsos poll completed on Wednesday found.
The poll’s results point to a potential political problem for Democrat President Joe Biden’s administration should the signs of shakiness in the U.S. banking sector worsen and prompt more aggressive government action.
The two-day Reuters/Ipsos poll found 84% of respondents – including strong majorities of Republicans and Democrats – think taxpayers should not have to pay to resolve problems caused by irresponsible bank management.
Many lawmakers, particularly Republican ones, have expressed similar sentiment in recent days, asserting that the president’s assurances notwithstanding, the aid to ailing banks represented a bailout that’d ultimately place burdens on taxpayyers and other financial institutions.
Biden said in a speech on Monday that taxpayers won’t suffer “losses” due to the bank’s collapse, noting that the money would be covered by the Deposit Insurance Fund which is paid into by banks.
“Joe Biden is pretending this isn’t a bailout,” Haley tweeted following Biden’s speech. “It is.”
She added, “Now depositors at healthy banks are forced to subsidize Silicon Valley Bank’s mismanagement. When the Deposit Insurance Fund runs dry, all bank customers are on the hook. That’s a public bailout.”
SVB Fallout
Stock markets have swooned around the world since Silicon Valley Bank collapsed on Friday as worried customers pulled their deposits. Two days later, New York’s Signature Bank closed. On Wednesday, U.S. stocks fell sharply as turbulence at Swiss banking giant Credit Suisse revived fears of a new banking crisis.
Banks have been stressed in recent months by rising interest rates, which reduce demand for borrowing money. In a series of moves telegraphed in advance to investors, the U.S. Federal Reserve, America’s central bank, has pushed interest rates higher over the last year in a bid to tame inflation.
Read Newsmax: Americans Intensely Wary of Bailouts as Banking Concerns Mount: Poll | Newsmax.com
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