Americans can rest assured that the banking system is safe, according to President Joe Biden. He made these remarks Monday morning after the collapse of Silicon Valley Bank and Signature Bank raised concerns of a full-blown banking crisis.<\/p>\n
The president asked Congress, the banking regulators, and the FDIC to strengthen the rules for banks to make it less likely that this kind of bank failure would happen again.[0]<\/a><\/sup> He also reassured Americans that their deposits will be safe and that no losses will be borne by the taxpayers. Instead, the money will come from the fees that banks pay into the Deposit Insurance Fund.[1]<\/a><\/sup><\/p>\n Biden also emphasized that investors in the banks will not be protected and that they knowingly took a risk when they invested.[2]<\/a><\/sup> He said, \u201cWhen the risk didn\u2019t pay off, investors lose their money. That\u2019s how capitalism works.\u201d[2]<\/a><\/sup><\/p>\n The president\u2019s remarks come after the Treasury Department, Federal Reserve, and FDIC announced that depositors of SVB will be fully protected and have access to their money starting Monday.[3]<\/a><\/sup><\/p>\n Shalanda Young, the director of the White House Office of Management and Budget, also sought to ease public concerns by stressing that the US banking system at large was \u201cmore resilient\u201d now due to the reforms put in place since the 2008 financial crisis.[4]<\/a><\/sup><\/p>\n The president also vowed to hold those responsible for the failure of Silicon Valley Bank \u201cfully accountable\u201d and to continue efforts to strengthen oversight and regulation of larger banks. He said, \u201cIf the bank is taken over by FDIC, the people running the bank should not work there anymore.\u201d[5]<\/a><\/sup> <\/p>\n Overall, the president\u2019s speech was designed to reassure Americans that the banking system is safe and that their deposits will be protected. His administration also promises to not put taxpayer dollars at risk while simultaneously holding those responsible accountable.<\/p>\n 0. <\/span>“Banking crisis: President Joe Biden says taxpayer funds won’t be used to bailout SVB, Signature bank” Yahoo Finance, 13 Mar. 2023, https:\/\/finance.yahoo.com\/banking-crisis-president-joe-biden-132320292.html<\/a><\/a><\/p>\n 1. <\/span>“Biden says Americans should ‘feel confident’ in banking system after federal response to SVB collapse” Fox News, 13 Mar. 2023, https:\/\/www.foxnews.com\/politics\/biden-americans-confidence-banking-system-federal-response-svb-collapse<\/a><\/a><\/p>\n 2. <\/span>“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<\/a><\/a><\/p>\n 3. <\/span>“Biden says America’s ‘banking system is safe’ after regulators back up all SVB deposits” FierceBiotech, 13 Mar. 2023, https:\/\/www.fiercebiotech.com\/biotech\/biden-says-americas-banking-system-safe-after-regulators-back-all-svb-deposits<\/a><\/a><\/p>\n 4. <\/span>“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<\/a><\/a><\/p>\n 5. <\/span>“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\/<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Americans can rest assured that the banking system is safe, according to President Joe Biden. He made these remarks Monday morning after the collapse of Silicon Valley Bank and Signature Bank raised concerns of a full-blown banking crisis.<\/p>\n The president asked Congress, the banking regulators, and the FDIC to strengthen the rules for banks to make it less likely that this kind of bank failure would happen again.[0]<\/a><\/sup> He also reassured Americans that their deposits will be safe and that no losses will be borne by the taxpayers. Instead, the money will come from the fees that banks pay into the Deposit Insurance Fund.[1]<\/a><\/sup><\/p>\n Biden also emphasized that investors in the banks will not be protected and that they knowingly took a risk when they invested.[2]<\/a><\/sup> He said, \u201cWhen the risk didn\u2019t pay off, investors lose their money. That\u2019s how capitalism works.\u201d[2]<\/a><\/sup><\/p>\n The president\u2019s remarks come after the Treasury Department, Federal Reserve, and FDIC announced that depositors of SVB will be fully protected and have access to their money starting Monday.[3]<\/a><\/sup><\/p>\n Shalanda Young, the director of the White House Office of Management and Budget, also sought to ease public concerns by stressing that the US banking system at large was \u201cmore resilient\u201d now due to the reforms put in place since the 2008 financial crisis.[4]<\/a><\/sup><\/p>\n The president also vowed to hold those responsible for the failure of Silicon Valley Bank \u201cfully accountable\u201d and to continue efforts to strengthen oversight and regulation of larger banks. He said, \u201cIf the bank is taken over by FDIC, the people running the bank should not work there anymore.\u201d[5]<\/a><\/sup> <\/p>\n Overall, the president\u2019s speech was designed to reassure Americans that the banking system is safe and that their deposits will be protected. His administration also promises to not put taxpayer dollars at risk while simultaneously holding those responsible accountable.<\/p>\n 0. <\/span>“Banking crisis: President Joe Biden says taxpayer funds won’t be used to bailout SVB, Signature bank” Yahoo Finance, 13 Mar. 2023, https:\/\/finance.yahoo.com\/banking-crisis-president-joe-biden-132320292.html<\/a><\/a><\/p>\n 1. <\/span>“Biden says Americans should ‘feel confident’ in banking system after federal response to SVB collapse” Fox News, 13 Mar. 2023, https:\/\/www.foxnews.com\/politics\/biden-americans-confidence-banking-system-federal-response-svb-collapse<\/a><\/a><\/p>\n 2. <\/span>“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<\/a><\/a><\/p>\n 3. <\/span>“Biden says America’s ‘banking system is safe’ after regulators back up all SVB deposits” FierceBiotech, 13 Mar. 2023, https:\/\/www.fiercebiotech.com\/biotech\/biden-says-americas-banking-system-safe-after-regulators-back-all-svb-deposits<\/a><\/a><\/p>\n 4. <\/span>“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<\/a><\/a><\/p>\n 5. <\/span>“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\/<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":2219,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/2220"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=2220"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/2220\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/2219"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=2220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=2220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=2220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}