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Barstool’s Dave Portnoy sounds off on Silicon Valley Bank rescue: ‘That’s not right’
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Dave Portnoy: ‘It really does bother me’ to see ‘bad businesses’ get rescued
Barstool Sports founder Dave Portnoy says banks shouldn’t be rescued for doing ‘bad business,’ and discusses sports industry hot topics.
Barstool Sports founder Dave Portnoy is bothered by the swift bailout for now-insolvent Silicon Valley Bank, which he calls a "bad business."
"When banks fail, it's a tough one because, again, the average ‘Joe Schmo’ puts their money [in], I want to get their money back, but I don't think banks should necessarily be rescued because you're running a bad business," Portnoy told host Stuart Varney on "Varney & Co." Thursday. "Nobody rescues me when I run out of money."
The White House has insisted that the auction and backstop action that Federal Deposit Insurance Corporation (FDIC), Federal Reserve and SEC regulators took to protect Silicon Valley Bank (SVB) clients amid its insolvency will come at "no cost" to taxpayers. Though following the collapse, other various regional banks’ shares started to plunge and market indexes declined over bank-run contagion fears.
Portnoy admitted Thursday he doesn’t pretend to be a banking expert, but realized after doing research that putting your money into SVB was a high-risk investment.
CHUCK SCHUMER, DEMS RUSH TO GIVE BACK DONATIONS FROM SILICON VALLEY BANK C.E.O.
"They were basically attracting risky companies, startups, crypto companies. That's their wheelhouse. And you have more risk when you do that," Portnoy said. "I'm glad people are getting their deposits back because I don't think the average Joe Schmo knows what they're getting involved in."