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\u2019s largest banks, Silicon Valley Bank and Signature Bank. Biden said his administration took \u201cquick action\u201d to protect customers\u2019 deposits without putting taxpayers at risk.<\/p>\n
\u201cAmericans can have confidence that the banking system is safe. Your deposits will be there when you need them,\u201d 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]<\/a><\/sup><\/p>\n 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 \u201cno losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.\u201d[1]<\/a><\/sup><\/p>\n Biden also said he will ask Congress and regulators to strengthen the rules for banks to make it \u201cless likely this kind of bank failure would happen again, and to protect American jobs and small businesses.\u201d[2]<\/a><\/sup><\/p>\n \u201cInvestors in the banks will not be protected. They knowingly took a risk, and when the risk didn\u2019t pay off, investors lose their money. That\u2019s how capitalism works,\u201d Biden said.[3]<\/a><\/sup><\/p>\n 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.<\/p>\n \u201cNo losses will be borne by the taxpayers. Instead, the money will come from the fees that banks pay into the Deposit Insurance Fund,\u201d Biden said.<\/p>\n Biden is scheduled to address the nation on Monday morning to provide further details on his administration\u2019s plan to protect depositors, hold those responsible accountable and ensure the banking system is safe.[1]<\/a><\/sup><\/p>\n 0. <\/span>“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<\/a><\/p>\n 1. <\/span>“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\/<\/a><\/p>\n 2. <\/span>“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<\/a><\/p>\n