Rep. Warren Davidson says regulators are pushing people out of banks
Investors are warning that the banking situation could worsen after the closures of Silicon Valley Bank and Signature Bank over the weekend
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GOP Ohio Rep. Warren Davidson says that regulators are pushing people out of banks in the midst of recent bank failures.
"It does seem like the regulators are kind of in what is known as 'Operation Choke Point,' which is the regulators are pushing people out of banks," Davidson told the "Just the News, No Noise" TV show.
"We're concerned that what really caused the run on these banks was regulatory pressure for people to move their money," Davidson continued.
President Joe Biden received backlash after saying that the "banking system is safe" the day after the government had to intervene in the failures of two massive banks.
Exchanges earlier this week halted the trading of several bank stocks due to volatility after the collapses of the Silicon Valley Bank and Signature Bank. Investors are warning that the banking situation could worsen as fallout continues.
U.S. stocks also plummeted Wednesday morning after bank concerns reached European markets.