- Americans broadly support bailing out Silicon Valley Bank, according to early polling.
- YouGov's findings also suggest that for now there is no major partisan split on the issue.
Early polling shows Americans broadly support the Biden administration's decision to bail out Silicon Valley Bank even if the White House and parts of Washington bristles at the use of the b-word amid lingering resentment from the 2008 financial crisis.
According to a poll conducted by YouGov, 64% of Americans support the Biden administration's actions. Respondents were specifically asked if they supported or opposed the decision "to bail out customers who had deposited money with Silicon Valley Bank after the bank collapsed last week."
YouGov surveyed 10,041 adults in a poll conducted March 13-14, 2023. This is a fast-moving issue, and opinion is likely to move quickly as well.
Democrats were much more effusive in their support, 79% of those respondents at least somewhat supported the action. While 62% of Republicans at least somewhat supported the decision and 54% of self-selected independent voters. Independents were much more likely to say they were unsure of their views.
Bailout semantics
In the wake of the Great Recession, bailout has become a dirty word in Washington and some Republicans clearly used it on Monday as a way to attack the decision. Some Republicans also tried to portray the bank's failure as a product of "woke" politics. Biden's name was not used in the question, instead it was described as a "US government" decision.
President Joe Biden told the nation on Monday that Americans should have confidence in the banking system. According to YouGov's polling, 70% of respondents who have money in banks felt at least somewhat safe about their own deposits. Only 6% of respondents felt "very unsafe" about their money. There was no major demographic split in the responses YouGov received.
Support for Biden's decision does not mean Americans are optimistic though. While most economists caution that special circumstances are at play, the jitters in the financial markets are palpable in the poll.
Fifty-four percent said Silicon Valley Bank's collapse makes it at least somewhat likely that a broader financial crisis is afoot. Of those respondents, 66% of Republicans said it was at least somewhat likely, 51% of Democrats, and 49% of independents.
The second-largest bank collapse in US history.
Silicon Valley Bank collapsed late last week, becoming the second-largest bank failure in US history.
Long favored by California's tech class, the financial institution quickly came under federal control. The Federal Deposit Insurance Corporation guarantees also depositors who hold $250,000 or less, but given the bank's clientele many accounts had sums far exceeding the insured cap. Federal officials later decided to make sure that all customers' money was protected, using a special fund that is financed by fees banks pay to cover the costs.
Officials later did the same for Signature Bank, a New York-based bank that sought to cater to cryptocurrency.
Administration officials have stressed that the way Silicon Valley Bank and Signature Bank were rescued should not be considered bailouts by the 2008 standard. Neither bank will be brought back to life and the executives that led the institutions have been fired. President Joe Biden has also repeatedly said that taxpayer money is not being used.
Americans' wrath built up in the wake of the financial crisis, particularly over the reality that no top financial executive faced jail time over the collapse of some of the world's largest companies. The perception was that wealthy Wall Street elites were saved while average Americans were left to fend for themselves as foreclosures swept the nation.
YouGov's survey was conducted online from March 13-14 among 10,041 US adults.