Andy Puzder, the former long-time CEO of CKE Restaurants, the parent company of Hardee’s and Carls’ Jr., ripped into President Biden after the collapse of Silicon Valley Bank (SVB).
Puzder started his scathing attack by noting Biden had announced on Monday that the Biden administration would conduct hold “accountable” whoever was responsible for the new financial crisis.
“He should first look in the mirror,” Puzder charged, adding, “the collapse of Silicon Valley Bank (SVB) and the ensuing hysteria lies at President Biden’s feet. … make no mistake – he created the conditions for today’s panic.”
Puzder cited former Clinton and Obama White House economist Larry Summers warning in 2021 that Biden’s $1.9 “American Rescue Plan” threatened the economy and the “least responsible” economic policy in 40 years. Puzder also cited the subsequent ironically-named “Inflation Reduction Act.”
“It’s also no surprise that SVB was the first bank to fail in this environment,” Puzder opined. “In fact, it is hard to ignore the irony of it. SVB – a west coast regional bank – filled it coffers with the deposits of Silicon Valley entrepreneurs, who were showered in billions of dollars of investments. In Biden’s over-heating economy, capital was easy to come by. But those who live by the sword, die by the sword.”
Puzder pointed out that the Federal Reserve “inevitably raised interest rates to cool the economy and tame raging inflation,” prompting SVB’s holdings to lose their value. He noted that SVB’s chief risk officer resigned in May 2022 and a replacement wasn’t hired until nine months later, and in that interim period “new deposits for SVB faltered. With no new cash coming in the bank doors, they should have recognized that they had a huge problem. But instead of taking action to correct course, the head of risk management for SVB’s UK branch was launching international equity and inclusion initiatives.”
Then Puzder turned to the Biden administration, saying that U.S. government regulators should not have been distracted, as the Financial Stability Oversight Council was created after the 2008 crash “to sound the alarm on lurking threats.” That council now includes Treasury Secretary Janet Yellen, Federal Reserve Chair Jay Powell, and Gary Gensler, head of the Securities and Exchange Commission.
“The council’s last meeting reveals urgent concerns over ‘climate-related financial risks,’ which the group identified as, ‘an emerging threat to U.S. financial stability,’” Puzder noted. “Not on their list of concerns – bank panics fueled by interest-rate driven portfolio losses.”
Puzder cited a pending new Labor Department rule that would “undermine a law that requires fund managers – like those overseeing 401k’s of millions of Americans – to pursue financial returns for their clients above political or social goals. The Biden rule would – you guessed it – make it easier for fund managers to advance left-wing causes, by insulating them from regulatory action if those investments fail.”
“If you think it’s far-fetched to believe that Biden administration would favor woke political and social imperatives over basic financial common sense – then think again,” he concluded.