President Biden Reassures Americans That Banking System is Safe and Deposits Secure
President Joe Biden reassured Americans on Monday morning that the banking system is safe and their deposits will be secure, following the collapse of two of the nation’s largest banks, Silicon Valley Bank and Signature Bank. Biden said his administration took “quick action” to protect customers’ deposits without putting taxpayers at risk.
“Americans can have confidence that the banking system is safe. Your deposits will be there when you need them,” Biden said from the White House. Small businesses all over the nation that have deposited accounts with these banks can now relax, knowing they will have the funds to pay their staff and their invoices. This relief extends to the employees of these businesses too.[0]
Depositors with accounts at Silicon Valley Bank will have access to all of their money beginning Monday, and the Treasury Department, Federal Reserve and FDIC promised that “no losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.”[1]
Biden also said he will ask Congress and regulators to strengthen the rules for banks to make it “less likely this kind of bank failure would happen again, and to protect American jobs and small businesses.”[2]
“Investors in the banks will not be protected. They knowingly took a risk, and when the risk didn’t pay off, investors lose their money. That’s how capitalism works,” Biden said.[3]
The president added that the money will come from the fees that banks pay into the Federal Deposit Insurance Corporation, and the taxpayers will not be responsible for any losses.
“No losses will be borne by the taxpayers. Instead, the money will come from the fees that banks pay into the Deposit Insurance Fund,” Biden said.
Biden is scheduled to address the nation on Monday morning to provide further details on his administration’s plan to protect depositors, hold those responsible accountable and ensure the banking system is safe.[1]
0. “Biden promises ‘your deposits will be there' amid banks' collapse” POLITICO, 13 Mar. 2023, https://www.politico.com/news/2023/03/13/biden-silicon-valley-bank-00086745
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 “banking system is safe” after Silicon Valley Bank collapse” Axios, 13 Mar. 2023, https://www.axios.com/2023/03/13/biden-says-banking-system-is-safe-after-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
