RESERVE TO PROVIDE ANSWERS. SENATOR TED CRUZ JOINS US NOW
FOR AN INTERVIEW. AND WE WANT TO WELCOME YOU TO
BLOOMBERG. IT'S GOOD TO SEE YOU AND WE
APPRECIATE YOUR TIME. YOU WRITE IN THIS LETTER THAT
PRESIDENT DAILY ESSENTIALLY FAILED TO ANSWER THE REQUEST
FOR INFORMATION ABOUT STB'S COLLAPSE, WHAT DID SHE SAY --
SVB'S COLLAPSE, WHAT DID SHE SAY?
>> WE GOT A LETTER THAT WAS A DISMISSIVE AND NOT SUBSTANTIVE
RESPONSE.
I TEAMED UP WITH JIM JORDAN AND -- TO ENGAGE IN OVERSIGHT AND
TO EXAMINE WHY THE SAN FRANCISCO FED WAS ESSENTIALLY
ASLEEP AT THE WHEEL. THE SAN FRANCISCO FED IS WHO
HAD SUPERVISORY RESPONSE ABILITY FOR SILICON VALLEY BANK.
THE DURATION RISKS ON THESE BONDS WAS EVIDENT ON THE FACE
OF IT AND YET THE APPROACH OF THE SAN FRANCISCO FED SEEMS TO
BE THAT OVERSIGHT CANNOT BE APPLIED TO IT AND THAT IT DOES
NOT HAVE TO RESPOND TO THE AMERICAN PEOPLE, IT DOES NOT
HAVE TO RESPOND TO CONGRESS.
AT THE CONSEQUENCE WAS BILLIONS OF DOLLARS THAT WENT UP IN
SMOKE BECAUSE THE REGULATORS FAILED TO CATCH THIS AND DO
THEIR JOB.
>> THE FEDERAL RESERVE IS NOT GOING TO RELEASE AN INTERNAL --
NOW GOING TO RELEASE AN INTERNAL REVIEW ABOUT THE
COLLAPSE COMING UP ON FRIDAY. WERE YOU ALERTED TO THIS OR WAS
THE FED JUST SAYING TO YOU WAIT FOR THE REVIEW THAT WILL BE OUT
THIS WEEK?
>> YOU KNOW, THE PROBLEM IS THAT THE SAN FRANCISCO FED AND
ALL OF THE BRANCH OFFICES IN THE FED HAVE A LONG HISTORY OF
ESSENTIALLY IGNORING CONGRESSIONAL INQUIRY, AND I
HAVE JOINED TOGETHER ON BIPARTISAN LEGISLATION, ALONG
WITH ELIZABETH WARREN, ELIZABETH AND I DON'T AGREE ON
A LOT BUT WE HAVE JOINED TOGETHER ON THIS TO SUBJECT
THESE BANKS TO A REQUEST SO THEY CAN BE SUBJECT TO
OVERSIGHT FROM CONGRESS AND FROM THE PUBLIC.
RIGHT NOW THEIR ATTITUDE IS THAT THEY CANNOT OR SHOULD NOT
BE SCRUTINIZED AND I THINK THAT IS THE WRONG ATTITUDE.
>> INDEED, WE ARE LIVING IN A NEW WORLD WHEN YOU AND
ELIZABETH WARREN SEEING THE SAME SONG.
-- SINGING THE SAME SONG. DEPENDING ON WHAT YOU FIND,
WHAT WILL BE THE ACCOUNTABILITY. THIS HAS BEEN A TOP STORY FOR
WEEKS, WHO GETS PUNISHED FOR THIS?
>> IT'S A REAL PROBLEM, AND YOU SAW THE BIDEN ADMINISTRATION
STEP IN, AND BAILOUT THE CUSTOMERS AT SILICON VALLEY
BANK. AND THEY DID THAT, I THINK MANY
OF THOSE CUSTOMERS WERE POLITICALLY WELL-CONNECTED,
POLITICAL SUPPORTERS OF THE PRESIDENT, AND I HAVE TO SAY
THAT LEAVES A LOT OF MAIN STREET SITTING BEHIND WONDERING
WHAT HAPPENS IF I DON'T HAVE A LOBBYIST WITH STROKE IN THIS
WHITE HOUSE, AND WE NEED TO HAVE CLEAR STANDARDS THAT APPLY
AND ARE TRANSPARENT AND I AM REALLY CONCERNED ABOUT THE
FALLOUT IN PARTICULAR, I AM CONCERNED THAT WE ARE SEEING A
FLIGHT OF CAPITAL AWAY FROM COMMUNITY BANKS AND MIDSIZE
BANKS TO THE GIANT BANKS. I THINK THAT IS REALLY HARMFUL.
ONE OF THE GREAT STRENGTHS OF OUR ECONOMY IS THE MULTITUDE OF
SMALL COMMITTEE BANKS WE HAVE THAT FINANCED SMALL BUSINESSES
AND ENTREPRENEURS AND IF DEPOSITORS SAY I'M SAFE IF I AM
AT A GIANT BANK BUT AT A SMALLER BANK I'M NOT, THAT
REALLY HAS A NEGATIVE IMPACT ACROSS THE BOARD.
>> THE OTHER BIG STORY THAT OUR VIEWERS ARE FOCUSED ON IS THAT
THAT CEILING AND IN YOUR BOOK IN YOUR OPENING CHAPTER YOU
TALK ABOUT THIS CLEAN DEBT CEILING THAT WAS GOING TO BE
ORCHESTRATED DURING THE OBAMA ADMINISTRATION BUT NO
REPUBLICANS WANTED THEIR FINGER PRINT ON IT.
DO YOU THINK THAT IF A DEAL CANNOT BE REACHED, REPUBLICAN
LEADERS NEED TO MAKE SURE THAT THE COUNTRY LIFTS THE DEBT
CEILING?
>> FRIDAY THINK YOU BEFORE, IT WILL HAVE TO GO THROUGH THE
HOUSE OF REPRESENTATIVES. AND SO, -- FOR ANYTHING TO MOVE
FORWARD TO WILL HAVE TO GO THROUGH THE HOUSE OF
REPRESENTATIVES. THE BIDEN ADMINISTRATION'S
POSITION IS UNREASONABLE. GO BACK TO 2000, OUR NATIONAL
DEBT WITH JUST $5 TRILLION.
$5 TRILLION AND THEN GEORGE BUSH BECAME PRESIDENT AND IN
EIGHT YEARS OUR NATIONAL DEBT DOUBLED FROM $5 TRILLION TO $10
TRILLION. THEN BARACK OBAMA BECAME
PRESIDENT. OUR NATIONAL DEBT DOUBLED AGAIN
FROM $10 TRILLION TO $20 TRILLION.
IT TOOK 42 PRESIDENTS OVER 200 YEARS TO BUILD UP $5 TRILLION
IN DEBT AND TWO PRESIDENTS, WHAT DEMOCRAT AND ONE
REPUBLICAN, QUADRUPLED THE DEBT IN JUST 16 YEARS.
WE ARE NOW AT ABOUT $32 TRILLION. WHAT WE ARE DOING IS
IRRESPONSIBLE, AND I THINK IT IS CRITICALLY IMPORTANT FOR
LEADERS IN THE HOUSE AND LEADERS IN THE SENATE TO FORCE
REAL SPENDING REFORMS. LET ME BE CLEAR.
UNDER NO CIRCUMSTANCES SHOULD THE UNITED STATES DEFAULT ON
OUR DEBT.
THERE IS ONE PERSON ON PLANET EARTH WHO CAN MAKE THAT 100%
CERTAINTY. JOE BIDEN. IRRESPONSIBLE PRESIDENT WOULD
SAY WE WOULD NEVER DEFAULT ON OUR DEBT BUT HE DOES NOT WANT
TO DO THAT BECAUSE HE WANTS TO SCAREMONGERING AND THREATEN A
DEFAULT RATHER THAN NEGOTIATE AND DISTRESS -- ADDRESS THIS
OUT-OF-CONTROL SPENDING AND DEBT.
>> WE HAVE BEEN TALKING ABOUT THIS EVERY DAY ON THIS PROGRAM
AND HEARING DAILY FROM REPUBLICANS WHO ARE NOT OPEN TO
A CLEAN DEBT CEILING BILL.
$7 TRILLION WAS ADDED TO THE U.S.
DEBT AT ONE POINT, WHY IS IT DIFFERENT NOW, WHY NOT SUE THE
MARKETS WITH A CLEAN DEBT LIMIT? >> NUMBER ONE, WE JUST CAME
THROUGH THE PAST TWO YEARS WHERE THE GRASS IN THE FIGHT
AND WHITE HOUSE AND THE DEBIT -- DEMOCRAT MAJORITY IN THE
SENATE WENT ON THE BIGGEST SPENDING SPREE IN MODERN
HISTORY, PRODUCING INFLATION THAT IS RAVAGING CONSUMERS AND
FAMILIES. THEY SPENT TRILLIONS OF
DOLLARS, PRINTED THE MONEY, AND MANY OF MYSELF -- US MYSELF
INCLUDED SAID IF YOU DO THIS WE WILL SEE THE INFLATION THAT IS
HAPPENING RIGHT NOW. WE WERE RIGHT AND THEY DISMISS
THAT. THEY DON'T WANT TO FIX IT AND
THEY DON'T WANT TO ADDRESS IT. I BELIEVE THAT WE SHOULD USE
THE DEBT CEILING AS LEVERAGE TO FORCE REAL AND MEANINGFUL
FISCAL REFORM. NOW, THAT DOES NOT MEAN WE HAVE
TO FIX ANYTHING.
IF YOU LOOK AT 2010, IN 2010, THEY POP -- PAST THE BUDGET
CONTROL ACT. OBAMA BLINKED AND APPROVED IT.
IT SAVED MASSIVE AMOUNTS OF MONEY PRODUCING THE DEBT.
WE SHOULD DO THAT AGAIN. GRAHAM ROTMAN CAME FROM THE
DEBT CEILING. JOE BIDEN IS SAYING THAT HE IS
NOT WILLING TO NEGOTIATE AT ALL, THAT IS IRRESPONSIBLE.
>> SENATOR, JOE BIDEN IS IT SAYING THAT HE WANTS TO SEE A
BUDGET AND THEN NEGOTIATE. I HAVE 30 SECONDS LEFT, A
HEARTBREAK. THE PRESIDENT HAS ANNOUNCED HIS
REELECTION, WHEN ARE YOU GOING TO ANNOUNCE WHO YOU SUPPORT, IS
THAT FORMER PRESIDENT TRUMP?
>> I'M RUNNING FOR REELECTION IN 2034, I FOCUSED ON
REELECTION. BIDEN'S POLICY AGENDA COULD NOT
HAVE BEEN MORE OF A DISASTER BETWEEN INFLATION, CRIME, CHAOS
AT THE SOUTHERN BORDER AND IT DISASTER.
>> SENATOR TED CRUZ, THANKS SO MUCH FREE TIME.
MORE COMING UP NEXT, THIS IS NUMBER. -- BLOOMBERG.
♪