{"id":2421,"date":"2023-03-16T17:02:35","date_gmt":"2023-03-16T22:02:35","guid":{"rendered":"https:\/\/embarrdowns.com\/biden-yellen-reassure-americans-banking-system-is-safe-with-30b-investment\/"},"modified":"2023-03-16T17:02:36","modified_gmt":"2023-03-16T22:02:36","slug":"biden-yellen-reassure-americans-banking-system-is-safe-with-30b-investment","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/biden-yellen-reassure-americans-banking-system-is-safe-with-30b-investment\/","title":{"rendered":"Biden, Yellen Reassure Americans: Banking System is Safe with $30B Investment"},"content":{"rendered":"

In the wake of the sudden collapse of Silicon Valley Bank and Signature Bank, US President Joe Biden addressed the nation to reassure Americans that the banking system is safe.[0]<\/a><\/sup> Treasury Secretary Janet Yellen echoed Biden\u2019s assurances, speaking before the Senate Finance Committee on Thursday.<\/p>\n

\u201cOur banking system remains sound,\u201d Yellen said.[1]<\/a><\/sup> People in the United States can trust that their funds will be available when needed.<\/p>\n

In an effort to further strengthen the banking system, the largest US banks are pouring $30 billion into First Republic Bank.[1]<\/a><\/sup> JPMorgan Chase, Bank of America and Citigroup are each expected to inject $5 billion, while other institutions are contributing smaller amounts.[2]<\/a><\/sup><\/p>\n

\u201cIt’s important to note, President Biden does nothing at 9 a.m.[3]<\/a><\/sup> He is a night owl,[5]<\/a><\/sup> said former White House press secretary Jen Psaki. [5]<\/a><\/sup>So, the fact that he is doing this at 9 a.m. anyway speaks to how vital the White House recognizes it is for him to have his voice out there.[4]<\/a><\/sup>[5]<\/a><\/sup><\/p>\n

[5]<\/a><\/sup>Americans can rest assured that our banking system is safe. Your funds are secure.[6]<\/a><\/sup> I can assure you that we will not be content with this and will continue to strive We\u2019ll do whatever is needed,\u201d Biden added.<\/p>\n

According to S&P Global Ratings, 68% of First Republic\u2019s deposits are uninsured by the Federal Deposit Insurance Corporation as they exceed the $250,000 limit.[7]<\/a><\/sup> This means these deposits are \u201cmost susceptible to withdrawal\u201d.<\/p>\n

Biden also stated that \u201cno losses will be borne by the taxpayers\u201d, and that the money will come from the fees that banks pay into the Deposit Insurance Fund.[6]<\/a><\/sup> He also said investors in the banks will not be protected, as they \u201cknowingly took a risk\u201d.[8]<\/a><\/sup><\/p>\n

The Federal Deposit Insurance Corporation (FDIC) provides insurance protection for deposits up to $250,000 per depositor, per ownership category, per FDIC-insured bank.[9]<\/a><\/sup> This means if a bank fails, you\u2019re protected up to the $250,000 limit.[10]<\/a><\/sup> It\u2019s important to remember that money deposited into bank accounts will be safe as long as the financial institution is federally insured.[9]<\/a><\/sup> <\/p>\n

The actions of the federal government this weekend to shore up Silicon Valley Bank’s depositors have been labeled a bailout by some experts.[11]<\/a><\/sup><\/p>\n

0. <\/span>“Biden outlines consequences for SVB and Signature Bank executives” CNN, 13 Mar. 2023, https:\/\/www.cnn.com\/videos\/business\/2023\/03\/13\/president-biden-silicon-valley-bank-signature-collapse-remarks-cnntm-vpx.cnn<\/a><\/a><\/p>\n

1. <\/span>“Big lenders plan to inject billions of dollars into embattled First Republic Bank” POLITICO, 16 Mar. 2023, https:\/\/www.politico.com\/news\/2023\/03\/16\/big-lenders-to-inject-billions-of-dollars-into-first-republic-bank-00087451<\/a><\/a><\/p>\n

2. <\/span>“11 banks sweep in with a $30 billion rescue of First Republic Bank” NPR, 16 Mar. 2023, https:\/\/www.npr.org\/2023\/03\/16\/1163958533\/first-republic-bank-silicon-valley-bank-signature-bank-bank-run<\/a><\/a><\/p>\n

3. <\/span>“‘Sleepy Joe’: Advisor confirms Biden ‘does nothing at 9am'” Sky News Australia, 15 Mar. 2023, https:\/\/www.skynews.com.au\/opinion\/chris-kenny\/sleepy-joe-advisor-confirms-biden-does-nothing-at-9am\/video\/f0b80e20a9ecf749243309e3d7ebeeda<\/a><\/a><\/p>\n

4. <\/span>“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<\/a><\/a><\/p>\n

5. <\/span>“Biden Looks to Reassure Nervous Customers That U.S. Banks Are Safe” U.S. News & World Report, 13 Mar. 2023, https:\/\/www.usnews.com\/news\/national-news\/articles\/2023-03-13\/biden-looks-to-reassure-nervous-customers-that-u-s-banks-are-safe<\/a><\/a><\/p>\n

6. <\/span>“Haley attacks Biden over \u2018bailout\u2019 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<\/a><\/a><\/p>\n

7. <\/span>“First Republic Stock Crashes To All-Time Low: What To Know About The Latest Bank On The Brink” Forbes, 16 Mar. 2023, https:\/\/www.forbes.com\/sites\/dereksaul\/2023\/03\/16\/first-republic-stock-crashes-to-all-time-low-what-to-know-about-the-latest-bank-on-the-brink\/<\/a><\/a><\/p>\n

8. <\/span>“Inside Biden’s SVB move to stop future bank runs” Axios, 14 Mar. 2023, https:\/\/www.axios.com\/2023\/03\/14\/biden-svb-stop-bank-runs<\/a><\/a><\/p>\n

9. <\/span>“Bank failures: A list of failed banks” Business Insider, 15 Mar. 2023, https:\/\/www.businessinsider.com\/personal-finance\/list-of-bank-failures<\/a><\/a><\/p>\n

10. <\/span>“How does FDIC insurance work? Silicon Valley Bank implosion” Fortune, 13 Mar. 2023, https:\/\/fortune.com\/2023\/03\/13\/how-does-fdic-insurance-work-silicon-valley-bank-implosion\/<\/a><\/a><\/p>\n

11. <\/span>“Bank collapses are a reckoning for Team Biden’s sheer economic incompetence” New York Post , 13 Mar. 2023, https:\/\/nypost.com\/2023\/03\/13\/as-banks-headed-for-crisis-team-biden-focused-on-prescribing-wokery\/<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

In the wake of the sudden collapse of Silicon Valley Bank and Signature Bank, US President Joe Biden addressed the nation to reassure Americans that the banking system is safe.[0]<\/a><\/sup> Treasury Secretary Janet Yellen echoed Biden\u2019s assurances, speaking before the Senate Finance Committee on Thursday.<\/p>\n

\u201cOur banking system remains sound,\u201d Yellen said.[1]<\/a><\/sup> People in the United States can trust that their funds will be available when needed.<\/p>\n

In an effort to further strengthen the banking system, the largest US banks are pouring $30 billion into First Republic Bank.[1]<\/a><\/sup> JPMorgan Chase, Bank of America and Citigroup are each expected to inject $5 billion, while other institutions are contributing smaller amounts.[2]<\/a><\/sup><\/p>\n

\u201cIt’s important to note, President Biden does nothing at 9 a.m.[3]<\/a><\/sup> He is a night owl,[5]<\/a><\/sup> said former White House press secretary Jen Psaki. [5]<\/a><\/sup>So, the fact that he is doing this at 9 a.m. anyway speaks to how vital the White House recognizes it is for him to have his voice out there.[4]<\/a><\/sup>[5]<\/a><\/sup><\/p>\n

[5]<\/a><\/sup>Americans can rest assured that our banking system is safe. Your funds are secure.[6]<\/a><\/sup> I can assure you that we will not be content with this and will continue to strive We\u2019ll do whatever is needed,\u201d Biden added.<\/p>\n

According to S&P Global Ratings, 68% of First Republic\u2019s deposits are uninsured by the Federal Deposit Insurance Corporation as they exceed the $250,000 limit.[7]<\/a><\/sup> This means these deposits are \u201cmost susceptible to withdrawal\u201d.<\/p>\n

Biden also stated that \u201cno losses will be borne by the taxpayers\u201d, and that the money will come from the fees that banks pay into the Deposit Insurance Fund.[6]<\/a><\/sup> He also said investors in the banks will not be protected, as they \u201cknowingly took a risk\u201d.[8]<\/a><\/sup><\/p>\n

The Federal Deposit Insurance Corporation (FDIC) provides insurance protection for deposits up to $250,000 per depositor, per ownership category, per FDIC-insured bank.[9]<\/a><\/sup> This means if a bank fails, you\u2019re protected up to the $250,000 limit.[10]<\/a><\/sup> It\u2019s important to remember that money deposited into bank accounts will be safe as long as the financial institution is federally insured.[9]<\/a><\/sup> <\/p>\n

The actions of the federal government this weekend to shore up Silicon Valley Bank’s depositors have been labeled a bailout by some experts.[11]<\/a><\/sup><\/p>\n

0. <\/span>“Biden outlines consequences for SVB and Signature Bank executives” CNN, 13 Mar. 2023, https:\/\/www.cnn.com\/videos\/business\/2023\/03\/13\/president-biden-silicon-valley-bank-signature-collapse-remarks-cnntm-vpx.cnn<\/a><\/a><\/p>\n

1. <\/span>“Big lenders plan to inject billions of dollars into embattled First Republic Bank” POLITICO, 16 Mar. 2023, https:\/\/www.politico.com\/news\/2023\/03\/16\/big-lenders-to-inject-billions-of-dollars-into-first-republic-bank-00087451<\/a><\/a><\/p>\n

2. <\/span>“11 banks sweep in with a $30 billion rescue of First Republic Bank” NPR, 16 Mar. 2023, https:\/\/www.npr.org\/2023\/03\/16\/1163958533\/first-republic-bank-silicon-valley-bank-signature-bank-bank-run<\/a><\/a><\/p>\n

3. <\/span>“‘Sleepy Joe’: Advisor confirms Biden ‘does nothing at 9am'” Sky News Australia, 15 Mar. 2023, https:\/\/www.skynews.com.au\/opinion\/chris-kenny\/sleepy-joe-advisor-confirms-biden-does-nothing-at-9am\/video\/f0b80e20a9ecf749243309e3d7ebeeda<\/a><\/a><\/p>\n

4. <\/span>“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<\/a><\/a><\/p>\n

5. <\/span>“Biden Looks to Reassure Nervous Customers That U.S. Banks Are Safe” U.S. News & World Report, 13 Mar. 2023, https:\/\/www.usnews.com\/news\/national-news\/articles\/2023-03-13\/biden-looks-to-reassure-nervous-customers-that-u-s-banks-are-safe<\/a><\/a><\/p>\n

6. <\/span>“Haley attacks Biden over \u2018bailout\u2019 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<\/a><\/a><\/p>\n

7. <\/span>“First Republic Stock Crashes To All-Time Low: What To Know About The Latest Bank On The Brink” Forbes, 16 Mar. 2023, https:\/\/www.forbes.com\/sites\/dereksaul\/2023\/03\/16\/first-republic-stock-crashes-to-all-time-low-what-to-know-about-the-latest-bank-on-the-brink\/<\/a><\/a><\/p>\n

8. <\/span>“Inside Biden’s SVB move to stop future bank runs” Axios, 14 Mar. 2023, https:\/\/www.axios.com\/2023\/03\/14\/biden-svb-stop-bank-runs<\/a><\/a><\/p>\n

9. <\/span>“Bank failures: A list of failed banks” Business Insider, 15 Mar. 2023, https:\/\/www.businessinsider.com\/personal-finance\/list-of-bank-failures<\/a><\/a><\/p>\n

10. <\/span>“How does FDIC insurance work? Silicon Valley Bank implosion” Fortune, 13 Mar. 2023, https:\/\/fortune.com\/2023\/03\/13\/how-does-fdic-insurance-work-silicon-valley-bank-implosion\/<\/a><\/a><\/p>\n

11. <\/span>“Bank collapses are a reckoning for Team Biden’s sheer economic incompetence” New York Post , 13 Mar. 2023, https:\/\/nypost.com\/2023\/03\/13\/as-banks-headed-for-crisis-team-biden-focused-on-prescribing-wokery\/<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":2420,"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\/2421"}],"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=2421"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/2421\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/2420"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=2421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=2421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=2421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}