ICYMI: Congressman Jeff Jackson Joins CNN This Morning, Discusses SVB Collapse
Jackson responds to GOP lawmakers blaming company’s failures on being “woke”
Charlotte – Today, Congressman Jeff Jackson joined CNN This Morning to discuss the collapse of Silicon Valley Bank.
On GOP lawmakers blaming SVB collapse on company being “woke”: “First of all, the investments that SVB lost money on weren’t anything to do with social justice, they were to do with bonds, they were to do mainly with mortgage-backed securities. That’s where they lost money and got into trouble.
“Second, in a moment of, I won’t say national crisis, but extreme national tension where the main concern is fear spreading it really would help if our [GOP] leaders were more serious in how they approach this. Throwing out labels like woke, just because they know that’s going to rile up maybe 25% of the country, is a really unserious way to approach this.”
On Congressional hearings: “I think there should be Congressional hearings. I think there will be Congressional hearings. I think the purpose of those hearings will be two-fold. First, an accountability phase. You referenced stock sales by the CEO in the weeks before the bank collapsed. The second is going to be to inform the regulatory response.”
On raising requirements for regional banks: “What I think you’re going to see through the investigatory process is that when we rolled those protections back, there were capital requirements and liquidity protections that all the sudden no longer applied to banks like Silicon Valley Bank. And we will never be able to be 100% sure that it would’ve made a difference, but it looks like a major contributing factor.
“More importantly, if we are going to have regional banks going forward and protect against this type of systemic risk– a domino effect– you’re going to need these kinds of protections in place to give people confidence.”
The interview comes after Congressman Jackson’s video on SVB’s collapse reached over 25 million people.
Congressman Jackson represents North Carolina’s 14th Congressional District, home to Charlotte, the nation’s second-largest banking center.