Ken Griffin, CEO of financial company Citadel Securities, says that the capitalist economy of the United States is “collapsing before our eyes” because of the actions taken by the US government after the collapse of Silicon Valley Bank, according to Markets Insider.

“The US is supposed to be a capitalist economy and it is collapsing before our eyes,” he told the Financial Times, charging that “there has been a loss of fiscal discipline, as the government is giving full returns to depositors.” .

Griffin argues that the US authorities should not have intervened to save all of SVB’s deposits, including those that were not insured, from financial loss.

“The losses of depositors would be insignificant and underestimated [pentru bănci] that risk management is important,” he also argues, arguing in this sense that the US economy is currently strong enough to face the consequences of last Friday’s spectacular collapse of SVB.

Griffin’s comments sparked a wave of criticism on social media, with many commenters pointing out that Wall Street did not share similar views when it came to bailing out US banks after the 2008 financial crisis.

But Griffin was one of the few American financiers who sharply criticized the activities of the big players on Wall Street that led to the crisis, advocating a return to legislation that separates commercial and investment banks, the Glass-Steagall Act in the case of the United States.

He has now accused US regulators of ignoring warning signs about Silicon Valley Bank’s behaviour, saying they were “asleep at the wheel”.

New big market shocks after Silicon Valley Bank collapse

Other American billionaires, including Bill Ackman, CEO of Pershing Square Capital Management, say that refunding SVB’s investors is not a bailout because the government is only protecting them, not the company’s management or shareholders.

Several bank employees told Axios this week that SVB was handing out bonuses hours before it filed for bankruptcy, sparking a new wave of outrage over the actions of major U.S. financial institutions.

Griffin’s comments to the Financial Times came before financial markets showed signs of further major turmoil on Wednesday, with Credit Suisse plummeting in the stock market, dragging other big European banks with it, and WTI oil prices falling below $70 a barrel. from December 2021, and the euro and pound sterling have depreciated heavily.

Credit Suisse’s woes sent the European banking index to its lowest level this year and triggered a sharp sell-off in currency markets.

“With Credit Suisse news doing all the damage in the currency markets this morning, European bank shares are taking another hit today,” said Simon Harvey, head of currency analysis at Monex.