Nuhey News

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SVB rescue is referred to as crony capitalism by GOP presidential candidate Ramaswamy

Ramaswamy’s comments on SVB’s rescue are in line with general criticism that the U.S. government’s decision to bail out large corporations during the 2008 financial crisis was an example of crony capitalism, or the practice of providing special favors to businesses with close ties to the government.

While SVB was not one of the largest banks to receive a bailout, it did receive a $235 million investment from the Troubled Asset Relief Program (TARP). Ramaswamy’s criticism of this decision is that the government should have instead used this money to help small businesses and individuals who were harder hit by the recession. He believes that this type of assistance would have been a more effective way to stimulate the economy and create jobs.