President Joe Biden has brushed off concerns about the health of the banking system following the collapse of the Silicon Valley Bank (SVB), claiming that the system remains safe, in an apparent effort to calm the public’s concerns about the country’s financial system.
In televised remarks from the White House, Biden stated, “Americans can have confidence that the banking system is safe,” adding that the government is ensuring that SVB depositors receive their money back.
He emphasized, “The money will come from the fees that banks pay into the deposit insurance,” saying, “No losses will be borne by the taxpayers.” Biden added that the bank managers will be fired.
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“I’m going to ask Congress and the banking regulators to strengthen the rules for banks in order to protect American jobs as a small business and make it less likely that this kind of bank failure will occur again.”
President Joe Biden said Sunday that under his leadership, US Treasury Secretary Janet Yellen and her chief economic adviser, Lael Brainard, we’re working with financial regulators to ensure that households and businesses affected by failures at Silicon Valley Bank and Signature Bank could access their accounts deposits and he promised to hold them accountable.
“I am firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again, “he said.
In what has become the largest bank failure in the United States since the 2008 financial crisis, US regulators shut down the SVB on Friday.
The Silicon Valley Bank had constructed its business by supporting tech new companies, including those from China.
The Federal Deposit Insurance Corporation (FDIC) reported that the bank’s total assets of $209 billion at the end of 2022 placed it among the top 20 American commercial banks.
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