Shark Tank’s Kevin O’Leary Warns Government Insuring Silicon Valley Bank Deposits Is Only a Victory for ‘Idiot Bank Managers’

O LEARY That s ░░░░░░░░ what happened Think about ░░░░░░░░ in very simple terms ░░░░░░░░ doesn t matter how ░░░░░░░░ or bad of bank ░░░░░░░░ you are and let ░░░░░░░░ take the case of ░░░░░░░░ Valley Bank that was ░░░░░░░░ the Fed s fault ░░░░░░░░ was not regulatory issues ░░░░░░░░ was plain straight idiot ░░░░░░░░ underneath an incompetent board ░░░░░░░░ hate to put it ░░░░░░░░ way but those are ░░░░░░░░ facts So at the ░░░░░░░░ of the day you ░░░░░░░░ t protect yourself against ░░░░░░░░ management including banking There ░░░░░░░░ always a black swan ░░░░░░░░ around in a lake ░░░░░░░░ and you found it ░░░░░░░░ Silicon Valley Bank But ░░░░░░░░ s where we re ░░░░░░░░ this morning with this ░░░░░░░░ policy I don t ░░░░░░░░ what bank we re ░░░░░░░░ about anymore You as ░░░░░░░░ depositor have no risk ░░░░░░░░ So what stops the ░░░░░░░░ bank manager going forward ░░░░░░░░ doing anything they want ░░░░░░░░ the regulatory environment taking ░░░░░░░░ much risk as possible ░░░░░░░░ get the stock price ░░░░░░░░ that bank up That ░░░░░░░░ how they are compensated ░░░░░░░░ will create some very ░░░░░░░░ acts by bank managers ░░░░░░░░ crazy behaviors In the ░░░░░░░░ it is not a ░░░░░░░░ term solution whatsoever because ░░░░░░░░ you decide to nationalize ░░░░░░░░ banks in which case ░░░░░░░░ bank managers work for ░░░░░░░░ as employees just like ░░░░░░░░ utilities or you let ░░░░░░░░ private sector be the ░░░░░░░░ sector and within that ░░░░░░░░ have collapses by idiot ░░░░░░░░ like the Silicon Valley ░░░░░░░░ which by the way ░░░░░░░░ the end of the ░░░░░░░░ would have only cost ░░░░░░░░ around 5 those that ░░░░░░░░ uninsured above 250 000 ░░░░░░░░ frankly people that have ░░░░░░░░ more than 250 000 ░░░░░░░░ sophisticated investors they could ░░░░░░░░ the hit We shouldn ░░░░░░░░ have done this and ░░░░░░░░ we have the moral ░░░░░░░░ ahead of us of ░░░░░░░░ bank managers everywhere doing ░░░░░░░░ behavior PERINO So do ░░░░░░░░ think that that realization ░░░░░░░░ cause anyone in D ░░░░░░░░ to try to roll ░░░░░░░░ what they decided to ░░░░░░░░ O LEARY It is ░░░░░░░░ as we speak This ░░░░░░░░ becoming very politicized I ░░░░░░░░ the unintended consequences of ░░░░░░░░ a nationalized no risk ░░░░░░░░ system is starting to ░░░░░░░░ in in the last ░░░░░░░░ hours and this debate ░░░░░░░░ going to rage and ░░░░░░░░ become a political issue ░░░░░░░░ frankly it makes me ░░░░░░░░ uncomfortable I understand the ░░░░░░░░ of having confidence in ░░░░░░░░ banking system everybody does ░░░░░░░░ the way you have ░░░░░░░░ look at this is ░░░░░░░░ than any other sector ░░░░░░░░ the economy We have ░░░░░░░░ sectors in the economy ░░░░░░░░ services is one of ░░░░░░░░ it services all other ░░░░░░░░ it s unique in ░░░░░░░░ respect So if we ░░░░░░░░ going to nationalize it ░░░░░░░░ s nationalize it but ░░░░░░░░ happens going forward all ░░░░░░░░ should be under way ░░░░░░░░ scrutiny far less profitable ░░░░░░░░ I don t think ░░░░░░░░ really saves the small ░░░░░░░░ bank long term Do ░░░░░░░░ really want to risk ░░░░░░░░ money there or are ░░░░░░░░ slowly going to migrate ░░░░░░░░ much larger institutions that ░░░░░░░░ even more highly regulated ░░░░░░░░ got a lot of ░░░░░░░░ as result of this ░░░░░░░░ I know it was ░░░░░░░░ knee jerk reaction but ░░░░░░░░ the reality sinks in ░░░░░░░░ again I ask everybody ░░░░░░░░ the bank manager has ░░░░░░░░ at risk nothing at ░░░░░░░░ and is backed up ░░░░░░░░ the Fed what stops ░░░░░░░░ from doing whatever they ░░░░░░░░