Biden Reassures Americans: Banking System is Safe, Depositors Protected
President Joe Biden addressed the nation Monday morning regarding the recent collapse of Silicon Valley Bank and Signature Bank, two of the nation's largest banks.[0]
In his remarks at the White House, Biden reassured Americans that the banking system is safe and that their deposits would be secure.[1] He also proposed a plan to strengthen the rules for banks in order to prevent a similar incident from occurring in the future.
The president stated that the government will guarantee depositors access to their funds, with no losses borne by taxpayers.[2] He added that depositors at the banks will have access to their money starting Monday, March 13.
Biden also noted that management of the banks will be fired and that investors will not be protected, as they knowingly took a risk.[3] Treasury Secretary Janet Yellen also confirmed that there would be no bailout for the banks' investors.
Shalanda Young, the director of the White House Office of Management and Budget, sought to ease public concerns by noting that the US banking system is “more resilient” now due to the reforms put in place since the 2008 financial crisis.[4]
In addition to strengthening the rules for banks to prevent future failures, Biden vowed to hold those responsible for the Silicon Valley Bank failure “fully accountable.” He also pledged that his administration will do whatever is needed to protect the deposits of American workers and small businesses without putting taxpayers at risk.
0. “Relief checks live updates: Social Security payments, tax refunds, student loan debt…” AS USA, 13 Mar. 2023, https://en.as.com/latest_news/relief-checks-live-updates-social-security-payments-tax-refunds-student-loan-debt-n-3/
1. “Silicon Valley Bank customers line up to take money out of Wellesley branch” CBS Boston, 13 Mar. 2023, https://www.cbsnews.com/boston/news/silicon-valley-bank-wellesley-massachusetts-customers-signature-bank-president-joe-biden/
2. “Biden says Americans should ‘feel confident' in banking system after federal response to SVB collapse” Fox News, 13 Mar. 2023, https://www.foxnews.com/politics/biden-americans-confidence-banking-system-federal-response-svb-collapse
3. “Biden Addresses FDIC Bank Takeovers: ‘The Banking System Is Safe' – SPDR S&P 500 (ARCA:SPY)” Benzinga, 13 Mar. 2023, https://www.benzinga.com/government/23/03/31320443/biden-addresses-fdic-bank-takeovers-the-banking-system-is-safe
4. “Biden vows to hold those responsible for Silicon Valley Bank failure ‘fully accountable'” KTVZ, 13 Mar. 2023, https://ktvz.com/politics/cnn-us-politics/2023/03/12/treasury-secretary-rules-out-bailout-for-silicon-valley-bank-2/
