Former CEO of UBS issues harsh warning on SVB collapse: This will give consumers ‘a lot of anxiety’
Plus, Charlie Gasparino warns that the SVB collapse could be a 'warning sign' for 'more to come'
Economic expert Robert Wolf reassures consumers that SVB collapse is ‘nothing like Lehman’
Former Obama economic adviser and former CEO of UBS Robert Wolf breaks down the historic collapse of Silicon Valley Bank and the economic fallout that has followed on ‘Fox & Friends Weekend.’
Former UBS CEO Robert Wolf is sounding the alarm on the disorienting downfall of Silicon Valley Bank – one of the nation's largest banks – warning Americans that the U.S. economy is withstanding "harsh times."
"This is viewed as unbelievable. Yes, this is a harsh time, but this is nothing like Lehman. Lehman was a contagion that spread across the globe. This is nothing like that. This is definitely going to cause a lot of anxiety," argued during an appearance on "Fox & Friends Weekend."
A customer stands outside of a shuttered Silicon Valley Bank (SVB) headquarters on March 10, 2023 in Santa Clara, California. Silicon Valley Bank was shut down on Friday morning by California regulators and was put in control of the U.S. Federal Deposit Insurance Corporation. | Getty Images
"I believe one of two things will happen. One, either someone's going to come in over the weekend – like a JPMorgan Chase – and buy Silicon Valley Bank because this is a great bank to buy. It's very unique with these type of venture companies that you'll be able to bank," the former Obama economic adviser explained. "Or number two, the FDIC is going to do something they never really do. FDIC insurance, I'm sorry to prolong it, is only insured up to $250,000… but there's enough coverage here to give all the depositors 50% to 75% of their money immediately."
SILICON VALLEY BANK GAVE COMPANY-WIDE BONUSES HOURS BEFORE IT COLLAPSED: REPORT
The closure of Silicon Valley Bank (SVB) was announced by the Federal Deposit Insurance Corporation (FDIC) on Friday, marking the worst U.S. financial institution failure in nearly 15 years.
SVB was the 16th largest bank in the United States until Friday afternoon. It failed after anxious depositors rushed to withdraw money over concern for the bank's health.
Collapse of Silicon Valley Bank is a ‘warning sign’ of how ‘screwed up’ our banking system is: Charlie Gasparino
FOX Business senior correspondent Charlie Gasparino provides expert analysis of the historic collapse of Silicon Valley Bank and its widespread economic impact.
FOX Business senior correspondent Charlie Gasparino issued his own analysis of the economic implosion during an earlier appearance on "Fox & Friends Weekend," Sunday.
"This is a warning sign of just how screwed up the plumbing in our banking system – our economy – is."
Gasparino bolstered the former UBS CEO's assertion, arguing that the Silicon Valley Bank failure is an incriminating sign that the U.S. banking system and economy are in peril.
"I think this is something that affects all Americans, and this is a warning sign of just how screwed up the plumbing in our banking system, our economy is. Let's rewind the videotape a little bit here. You know, we've had years and years of printing money by the Federal Reserve – way too much. Even when we were coming out of the pandemic, we had the Biden administration spending a lot of money. You do stuff like that, you mess with the economy like that," he said to co-host Pete Hegseth.
Big banks look more 'stable' following Silicon Valley Bank collapse: Carleton English
Ben Levisohn, Carleton English and Jack Hough discuss the markets following Federal Reserve Chairman Powell's testimony before Congress, the collapse of Silicon Valley Bank, the impact on the banking industry and railroad safety spending data.
"You screw around with the economy like we did, doing really stupid stuff, Joe Biden spending all that money when he didn't have to. When we were out of the pandemic, the Fed just kept keeping interest rates low, printing money. You do that, you're going to get inflation. When you get inflation, you're going to raise interest rates because inflation is horrible. It destabilizes societies, economies. When it comes down and when you deal with that, well, guess what? You're going to have these sorts of disturbances. This is a warning sign of possibly more to come," Gasparino concluded.
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FOX Business' Aislinn Murphy contributed to this report.