Dem Senator Asked About Censoring Info That Would Cause Bank Run, Massie Says

Rep. Thomas Massie (R-KY) mentioned Sunday that no less than one Democrat senator needed to censor what info is on the market to the general public within the wake of Silicon Valley Financial institution’s collapse final week.

In a tweet Sunday, Massie mentioned an unnamed Democrat senator had requested what choices the federal government has to censor info that might trigger a run on the banks.

“Just got off of a zoom meeting with Fed, Treasury, FDIC [Federal Deposit Insurance Corporation], House, and Senate,” Massie tweeted.

Simply received off of a zoom assembly with Fed, Treasury, FDIC, Home, and Senate.

A Democrat Senator primarily requested whether or not there was a program in place to censor info on social media that might result in a run on the banks.

— Thomas Massie (@RepThomasMassie) March 13, 2023

“A Democrat Senator essentially asked whether there was a program in place to censor information on social media that could lead to a run on the banks,” Massie added.

Silicon Valley Financial institution, a well-liked financial institution for U.S. tech startups, confronted a sudden financial institution run on Friday. The disaster spiraled into the most important American financial institution failure since 2008.

The chaos kicked off on Wednesday when Silicon Valley Financial institution introduced that it had offered a considerable amount of securities, dropping $1.8 billion, and was planning to promote $2.25 billion in new shares to offset the loss.

This brought on enterprise capital companies to reportedly advocate corporations take their cash out of the financial institution. The financial institution’s clients tried to withdraw about $42 billion, and the financial institution ran out of money.

Over the course of Thursday, the financial institution’s inventory nosedived 60%.

The panic started to unfold past Silicon Valley Financial institution on Thursday. Buyers utilizing different banks began to withdraw their cash as effectively, worrying {that a} disaster just like 2008 was starting. This brought on these banks’ inventory to sink too.

On Friday morning, buying and selling of Silicon Valley Financial institution’s shares was halted, and California regulators shut down the financial institution about 48 hours after the disaster started.

SVB was 40 years previous and the Sixteenth-largest U.S. financial institution earlier than it was shuttered.

Massie mentioned the response to the Democrat senator’s query was, “We will get back to you on that.”

Massie additionally responded to a Twitter consumer who commented that whereas they’re anti-censorship, “spreading unfounded rumors to promote a run on a bank” is akin to “yelling fire in a crowded theater.”

“What about yelling fire in a theater that’s on fire?” Massie replied.

Censorship has develop into a flashpoint within the political debate during the last a number of years, particularly within the wake of the 2020 election and the pandemic. The Biden administration pressured social media corporations to censor details about COVID that bucked the mainstream line of thought. Final month, Home Republicans grilled former Twitter workers about whether or not the FBI pressured the corporate to censor the Hunter Biden laptop computer story forward of the 2020 election.

On Monday, President Joe Biden promised taxpayers wouldn’t shoulder the price of Silicon Valley Financial institution’s failure.

“No losses will be — and this is an important point — no losses will be borne by the taxpayers; let me repeat that, no losses will be borne by the taxpayer,” Biden mentioned on the White Home. 

“Instead the money will come from the fees that banks pay into the Deposit Insurance Fund,” Biden mentioned.

Silicon Valley Financial institution’s clients may have entry to their cash on Monday, Biden mentioned.

“From Dem Senator Requested About Censoring Data That Would Trigger Financial institution Run, Massie Says“

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