President Biden has assured Americans that the banking system is safe and their deposits will be there when they need them, following the collapse of Silicon Valley Bank and Signature Bank, which sparked fears of a full-blown banking crisis.[0]
On Monday, Biden 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.”[1] He added, “No losses will be borne by the taxpayers. Instead the money will come from the fees that banks pay into the Deposit Insurance Fund.”[2]
Management of the two banks will be fired, Biden said, and investors will not be protected because they knowingly took a risk.[3] The president also said he is “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.”
Treasury Secretary Janet Yellen echoed Biden’s comments, ruling out a federal bailout for Silicon Valley Bank’s investors and stressing that “we’re certainly not looking” to do that again.[2]
The White House Office of Management and Budget Director Shalanda Young also sought to ease public concerns, saying the US banking system is “more resilient” now “due to the reforms put in place.”[4]
Depositors with accounts at Silicon Valley Bank will have access to all of their money beginning Monday and “no losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer,” according to the Biden administration.[5]
The United Kingdom subsidiary of Silicon Valley Bank, who had gone bankrupt, has been acquired by HSBC, thus ensuring the financial security of the countless tech companies in Britain that keep their funds in the bank.[6]
Joe Biden demanded a thorough investigation of the reasons behind the closure of Silicon Valley Bank and that “those responsible should be held liable.”[7] He vowed to hold those responsible for the banking failure “fully accountable” and to continue efforts to strengthen oversight and regulation of larger banks.
0. “Biden says ‘our banking system is safe’ amid Silicon Valley Bank fallout” The Hill, 13 Mar. 2023, https://thehill.com/homenews/administration/3897516-biden-says-our-banking-system-is-safe-amid-silicon-valley-bank-fallout/
1. “Biden speaks on banking crisis hoping to reassure Americans” ABC News, 13 Mar. 2023, https://abcnews.go.com/Politics/biden-speaks-banking-crisis/story?id=97820883
2. “Biden stresses that Silicon Valley Bank is not getting a bailout” The Hill, 13 Mar. 2023, https://thehill.com/homenews/administration/3897534-biden-stresses-that-silicon-valley-bank-is-not-getting-a-bailout/
3. “Biden says Americans can “rest assured” banking system is secure after SVB collapse” CBS News, 13 Mar. 2023, https://www.cbsnews.com/news/joe-biden-silicon-valley-bank-collapse-watch-live-stream-today-2023-03-13
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/
5. “Silicon Valley Bank collapse: Biden speaks Monday on financial sector crisis” NPR, 13 Mar. 2023, https://www.npr.org/2023/03/13/1163046482/watch-live-biden-discusses-the-silicon-valley-banks-meltdown-and-the-u-s-economy
6. “HSBC acquires Silicon Valley Bank UK Limited” HSBC, 13 Mar. 2023, https://www.hsbc.com/news-and-media/media-releases/2023/hsbc-acquires-silicon-valley-bank-uk-limited
7. “Biden says ‘the banking system is safe’ after Silicon Valley Bank shutdown” NBC News, 13 Mar. 2023, https://www.nbcnews.com/politics/politics-news/biden-deliver-remarks-silicon-valley-bank-shutdown-rcna74622