On Monday, March 16, 2023, President Joe Biden addressed the nation to reassure Americans their deposits are safe amid the sudden collapses of Silicon Valley Bank and Signature Bank. The president emphasized that the federal government is not bailing out the banks and that taxpayers will not be on the hook for his administration’s actions to contain the collapses.[0]
“The bottom line is this: Americans can rest assured that our banking system is safe. Biden assured that deposits are secure.
The Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 per depositor, per ownership category. This means individuals are insured for up to $250,000, and a married couple with a small business may have up to $250,000 insured in an account in one spouse’s name, up to $250,000 in an account in the other spouse’s name and up to $250,000 in a business account.
Biden also stressed that no losses will be borne by taxpayers. The government’s Deposit Insurance Fund will be funded by the fees charged to banks.[1]
White House Press Secretary Jen Psaki said Biden usually “does nothing at 9am”, meaning his latest morning press conference is “vital for America”.[2] In 2018, moderate Senate Democrats voted to reduce regulations on midsize banks, and they are continuing to support this decision despite the failure of Silicon Valley Bank. This puts them in line with Republicans who are rejecting more thorough oversight of such financial institutions.[3]
The president is taking action to reduce the risks of another bank collapse happening again. People lined up outside of Silicon Valley Bank offices to try and retrieve their funds, and Biden’s address is meant to provide assurance that the banking system is safe and their deposits will be available when needed.
0. “Haley attacks Biden over ‘bailout’ of Silicon Valley Bank” The Hill, 13 Mar. 2023, https://thehill.com/business/banking-financial-institutions/3897971-haley-attacks-biden-over-bailout-of-silicon-valley-bank
1. “What to know about FDIC insurance and how your money is protected” ABC News, 13 Mar. 2023, https://abcnews.go.com/Business/money-fdic-protects/story?id=97831935
2. “Twitter explodes after former Biden spox praises president for working at 9 am” Yahoo Life, 14 Mar. 2023, https://www.yahoo.com/lifestyle/twitter-explodes-former-biden-spox-165518485.html
3. “Senate Democrats Who Voted For 2018 Bank Deregulations Say They Have No Regrets” Forbes, 15 Mar. 2023, https://www.forbes.com/sites/saradorn/2023/03/15/senate-democrats-who-voted-for-2018-bank-deregulations-say-they-have-no-regrets