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'Shark Tank' star Kevin O'Leary bashes SVB bailout, moves assets out of banks
Silicon Valley Bank has become the ‘poster boy for idiot management’: Kevin O’Leary
O’Leary Ventures Chairman Kevin O’Leary raises moral hazards and ‘unintended consequences’ from regulators’ bailout of Silicon Valley Bank.
O’Leary Ventures Chairman and "Shark Tank" investor Kevin O’Leary has ripped apart regulators’ response to the Silicon Valley Bank (SVB) bailout and taken market action.
"There's going to be problems ahead here because, frankly, I don't think just guaranteeing deposits is enough to keep everybody with all of their money in just the regional bank. There's going to be diversification," O’Leary told FOX Business host Neil Cavuto on "Cavuto: Coast to Coast" Tuesday.
"Even in our own portfolio, we have now moved our assets across five different financial institutions," he continued. "I don't care anymore to take risk and concentrated risk, and I think others will do the same."
O’Leary’s comments came just after the U.S. Department of Justice and Securities Exchange Commission announced a formal investigation into Silicon Valley Bank’s insolvency, which became the second-largest bank to close since the Great Recession over the weekend.
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After federal banking regulators held an auction and ensured backstop protection, the "Shark Tank" star predicted "all kinds of new regulations" would be created for the regional bank system.