President Joe Biden addressed the nation Monday morning to discuss the emergency plan his administration has enacted to contain the collapse of Silicon Valley Bank and Signature Bank, the two largest bank failures in the United States since the Great Recession of 2008.[0]
The President’s team took swift action to protect the deposits of American workers and small businesses without putting taxpayers at risk. Customers with accounts at Silicon Valley Bank and Signature Bank will have immediate access to their money, with no losses associated with the resolution of Silicon Valley Bank borne by the taxpayer.
“The American people and American businesses can have confidence that their bank deposits will be there when they need them,” Biden said.[1] “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.”[2]
Biden also noted that “management of these banks will be fired” and “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.”[3]
The President’s team is also working to get a full accounting of what happened and why those responsible can be held accountable.
“I’m pleased they reached a solution that protects workers, small businesses, taxpayers, and our financial system,” Biden said.[2] “We will not stop at this.[4] We will do whatever is needed.[5]
0. “Biden team scrambles to assuage financial and political fears after Silicon Valley Bank failure” CNN, 13 Mar. 2023, https://www.cnn.com/2023/03/13/politics/biden-silicon-valley-bank-politics/index.html
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. “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/
3. “Biden emphasizes US banking system is safe after Silicon Valley Bank collapse” CNN, 13 Mar. 2023, https://www.cnn.com/2023/03/13/politics/biden-banking-speech/index.html
4. “The Silicon Valley Bank Crisis Is Complicated. But Donald Trump’s Role In It Isn’t” Vanity Fair, 13 Mar. 2023, https://www.vanityfair.com/news/2023/03/silicon-valley-bank-collapse
5. “Banking crisis: President Joe Biden says taxpayer money won’t be used to bail out SVB, Signature Bank” Yahoo Finance, 13 Mar. 2023, https://finance.yahoo.com/banking-crisis-president-joe-biden-132320292.html