On Saturday, Home Depot co-founder Bernie Marcus joined ‘Cavuto Live' to discuss the recent collapse of Silicon Valley Bank which has caused panic amongst depositors across the country and has prompted some to call for a federal bailout.
When asked whether or not people should panic given the recent collapse, Marcus said that the collapse represents a broader market-wide problem due to President Biden's policies.
“I can't wait for Biden to get on the speech again and talk about how great the economy is and how it's moving forward and getting stronger by the day,” he said. “And this is an indication that whatever he says is not true. And maybe the American people will finally wake up and understand that we're living in very tough times, that, in fact, that a recession may have already started. Who knows? But it doesn't look good.”
“I feel bad for all of these people that lost all their money in this woke bank. You know, it was more distressing to hear that the bank officials sold off their stock before this happened,” he continued. “It's depressing to me. Who knows whether the Justice Department would go after them? They're a woke company, so I guess not. And they'll probably get away with it.”
According to records, the CEO of Silicon Valley Bank sold 11 percent of his stock on February 27th, General Counsel Michael Zucker sold 19 percent on February 5th, CFO Daniel Beck sold 32 percent on February 27th, and CMO Michelle Draper sold 25 percent on February 1st.
When asked if there were other banks like Silicon Valley that are prioritizing wokeism, Marcus said that there are and it is being forwarded top-down by Democrat lawmakers, as reported by Fox News Digital.
BREAKING: Before the collapse of Silicon Valley Bank, executives sold a lot of their shares.
Gregory Becker, CEO, sold 11% on Feb 27, 2023.
Michael Zucker, General Counsel, 19% on Feb 5.
Daniel Beck, CFO, sold 32% on Feb 27.
Michelle Draper, CMO, sold 25% on Feb 1.
— unusual_whales (@unusual_whales) March 11, 2023
WATCH: JIM CRAMER MAKES ONE OF THE WORST STOCK BUY CALLS IN HISTORY AS SILICON VALLEY BANK COLLAPSES
“I think that the system, that the administration has pushed many of these banks into [being] more concerned about global warming than they do about shareholder return,” Marcus explained. “And these banks are badly run because everybody is focused on diversity and all of the woke issues and not concentrating on the one thing they should, which is, shareholder returns.”
“Instead of protecting the shareholders and their employees, they are more concerned about the social policies,” the Home Depot founder remarked. “And I think it's probably a badly run bank. They've been there for a lot of years. It's pathetic that so many people lost money that won't get it back.”
While Cavuto disagreed with Marcus about his diagnosis of the bank's failures, the Home Depot founder did agree that the Federal Reserve's policies are contributing to broader systemic problems that are impacting the market.
“The Fed keeps raising rates and inflation keeps going in the wrong direction. It's not staying where it should be. People are struggling. People can't pay their bills,” he responded. “They can't fill their tanks with gas. And if you think that's a good sign, I don't think it is. And we have an administration that's obtuse to this. They just keep talking about the great times and how good it is. It's not good.”
“Somebody with a sane head has to come in and understand that you can't do two things,” he continued. “Number one, you can't keep raising rates. You can't keep inflation as strong as it is. And you can't tax people more than they are.[Biden's] proposal to tax the middle class and the rich is about as dumb as I've heard it a long time. In a recession like this, you don't do things like that.”
With the collapse of Silicon Valley Bank, Americans, particularly in California, are panicking given the potential for broader problems amongst regional banks. While this is worrisome, the last thing that government should do is give another costly bailout to a bank that failed to assess risk.
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