Citadel CEO: U.S. Capitalism Is “Breaking Down Before our Eyes”
March 14, 2022
Ramsha Naushad
Ken Griffin of Citadel has said because the Federal Reserve intervened in Silicon Valley Bank, "US capitalism is ‘breaking down before our eyes".
“The US is supposed to be a capitalist economy, and that’s breaking down before our eyes. There’s been a loss of financial discipline with the government bailing out depositors in full.”
A few skeptics have opined that the Fed’s move to rescue the banks’ customers highlights the fact that regulators missed out on key warning signs.
“The regulator was the definition of being asleep at the wheel".
“We’re at full employment, credit losses have been minimal, and bank balance sheets are at their strongest ever. We can address the issue of moral hazard from a position of strength".
In fact, he went on to add that the U.S. economy was strong enough to take care of itself, without the support of the regulators.
Griffin opined that the U.S. taxpayers “should not have to bail out” institutional investors.