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Biden Vows to Hold Parties Responsible for SVB Collapse, Treasury Sec. & NEC Director Reassure Americans of Financial System Safety

On March 13, 2023, President Joe Biden vowed to hold those responsible for the failure of Silicon Valley Bank (SVB) and Signature Bank accountable while reassuring Americans that their deposits are safe.[0] SVB had been the 16th-largest bank in the U.S. before its shutdown Friday after it lost $2 billion in a liquidity crisis.[1]

Treasury Secretary Janet Yellen and National Economic Council Director Shalanda Young sought to ease public concerns, with Young insisting that the US banking system at large was “more resilient” now.[2]

“Over the weekend, and at my direction, the Treasury Secretary and my National Economic Council Director worked diligently with the banking regulators to address problems at Silicon Valley Bank and Signature Bank,” Biden said in a statement Sunday.[3] “I am pleased that they reached a prompt solution that protects American workers and small businesses, and keeps our financial system safe. The solution also ensures that taxpayer dollars are not put at risk. The American people and American businesses can have confidence that their bank deposits will be there when they need them. 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.”[4]

The SVB collapse has prompted a bailout debate in Washington as lawmakers assess the fallout.[5] Republican Rep. Nancy Mace of South Carolina told CNN’s Kaitlan Collins in a separate interview that she didn’t support a bailout “at this time” but cautioned, “It’s still very early.”[5]

The Treasury Department and the FDIC released a joint statement saying that the action was taken to “strengthen public confidence in our banking system.”[6]

President Biden tweeted to his 29.9 million followers on March 13 that he’s pleased that the agencies have “reached a solution that protects workers, small businesses, taxpayers and our financial system,” and added, “And we won’t stop there.[3]

0. “Biden vows to hold accountable those responsible for SVB, Signature collapse” Cointelegraph, 13 Mar. 2023, https://cointelegraph.com/news/biden-vows-to-hold-those-responsible-for-svb-signature-collapse

1. “Khanna calls on Biden administration to take “decisive action” on Silicon Valley Bank collapse” CBS News, 12 Mar. 2023, https://www.cbsnews.com/news/silicon-valley-bank-collapse-ro-khanna-biden-administration-take-decisive-action/

2. “Biden team scrambles to contain financial and political contagion” CNN, 13 Mar. 2023, https://www.cnn.com/2023/03/13/politics/biden-silicon-valley-bank-politics/index.html

3. “Statement from President Joe Biden on Actions to Strengthen Confidence in the Banking System” Forex Factory, 13 Mar. 2023, https://www.forexfactory.com/news/1210236-statement-from-president-joe-biden-on-actions-to

4. “Biden ‘pleased' with Feds' response on Silicon Valley Bank collapse, set to soon address deposits and closures” Fox Business, 13 Mar. 2023, https://www.foxbusiness.com/markets/biden-pleased-feds-response-silicon-valley-bank-collapse-address-deposits-closures

5. “Biden vows to hold those responsible for Silicon Valley Bank failure ‘fully accountable'” CNN, 13 Mar. 2023, https://www.cnn.com/2023/03/12/politics/janet-yellen-bailout-silicon-valley-bank-cnntv/index.html

6. “Biden announces bailout for wealthy depositors in Silicon Valley Bank” WSWS, 13 Mar. 2023, https://www.wsws.org/en/articles/2023/03/13/pdht-m13.html

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