Huge Capital Flight From US Banks Is Concerning

It’s been just revealed that there is an extremely great capital flight that the US has been seeing from the banks, and this is a more than concerning issue. Check out the latest reports about this below.

According to the latest reports, it seems that Texas senator Ted Cruz says the amount of capital fleeing US banks is particularly concerning and could signal pain for everyday Americans.

Cruz also made sure to say the fact that the capital is leaving the smaller financial institutions in favor of the larger banks, creating a consolidation of wealth within the most dominant enterprises.

In an interview with Bloomberg, Cruz says Silicon Valley Bank (SVB) may have received special treatment from connections in Washington during its collapse last month. He says it sends a grave message to smaller businesses in the US.

“It’s a real problem and you saw the Biden administration step in and bail out the customers at Silicon Valley bank, and… I think many of those customers were politically well connected, political supporters of the President and I gotta say that leaves a lot of Main Street sitting behind wondering ‘Well, what happens if I don’t have a lot of lobbyists with stroke in this White House?’”

He continued and said the following:

“And we need to have clear standards that apply that are transparent. I’m really concerned about the fallout in particular on concern that we’re seeing a flight of capital away from community banks, away from mid-sized banks, to the giant banks.”

He also stated this:

“I think that’s really harmful. One of the great strengths of our economy is the multitude of small community banks we have that finance small businesses, that finance entrepreneurs and if depositors say ‘Well, I’m safe if I’m at a giant bank, but at a smaller bank I’m not,’ that really has a negative impact across the board.”