The sudden and shocking collapse of Silicon Valley Bank and the government’s subsequent attempts to prevent a run and the possibility of the complete collapse of the banking sector have sent shockwaves across the American economy and left many confused. Of course, many famous names have taken to social media or appeared on news broadcasts to voice their opinion of the situation and discuss what they believe the government should have done.
Many are wondering what Mark Cuban and Kevin O’Leary think about the situation. Both men are known for their business acumen due to their roles on Shark Tank, a show where they vet would-be entrepreneurs.Â
What has Mark Cuban said?
Mark Cuban has been very vocal about the Silicon Valley bank situation, with several comments making headlines over the past few days. Cuban made a Twitter thread on March 10th, giving “some thoughts” about the bank’s collapse. During the posting spree, he said the government should “IMMEDIATELY buy all the securities/debt the bank owns at near par, which should be enough to cover most deposits.”
Cuban ended the thread by noting: “I have zero personal funds there, although several of my portfolio companies do. Probably all in about 8 to 10m dollars. So I can help them.”
Later that evening, he returned to Twitter to post that it’s “not the wealthy taking the hit. It’s the thousands of companies who borrowed from SVB and were required to keep their cash in SVB.” Going on to say: “they are who the Fed should protect.”
On March 12th, Cuban spoke about the situation in a Twitter space hosted by Mario Nawfal. According to reports, Cuban talked about how his company CostPlus Drugs — which had money in the bank — was affected.
“We’re scrambling and opening up accounts and staying up late talking to bankers to get accounts opened up at other banks,” he said. “And you know, I’m writing checks on Monday morning first thing, to make sure that payroll is payable and, you know, because this CostPlus Drugs.com is my baby.”
Cuban entered a Twitter discussion thread on March 13th, calling for more protections. He said that “I’m not saying free unlimited FDIC coverage. Never. But creating accounts that are fully insured, with the associated necessary premiums, or some equivalent, is a necessity.”
What has Kevin O’Leary said about the situation?
As the situation developed, Kevin O’Leary made several TV appearances to discuss the fallout. On Sunday, O’Leary took to Twitter to blame the situation on a “combination of a negligent board of directors” and “idiot management.” Before asking “why should taxpayers bail them out?”
Later, he would appear on CNN and say the government’s actions had “nationalized” the American banking system. He said the government’s actions meant there was no longer “no risk in any bank, any time, and you as the taxpayer bear that going forward.”
As he continued, he said that in the future, investors should look at banking as “highly-regulated utilities,” noting that you should “change your mind” if you believe owning “bank stocks” was a good idea. He ended the segment by saying:
“There’s no such thing as a free lunch. And this is going to be very expensive for shareholders of banks long term. I would never put my money into a bank stock ever again.”
