- Joe Biden said he intended to give a speech on Monday morning to reassure Americans about the US financial system.
- Silicon Valley Bank suddenly collapsed.
- Becoming the largest US lender to fail in more than a decade.
US President Joe Biden promised to hold “fully accountable” those in charge of Silicon Valley Bank and another financial institution, Signature Bank, for their failure. He nevertheless made an effort to ensure Americans that their deposits are secure.
“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,” Biden said in a statement.
The American people and American businesses can have confidence that their bank deposits will be there when they need them.
— President Biden (@POTUS) March 13, 2023
The president continued, “The American people and American businesses can have confidence that their bank deposits will be there when they need them.”
After the failures of Silicon Valley Bank and Signature Bank, Joe Biden said he intended to give a speech on Monday morning to reassure Americans about the US financial system.
“I will deliver remarks on how we will maintain a resilient banking system to protect our historic economic recovery,” he said Sunday night in a statement that also included Biden’s promise of “holding those responsible for this mess fully accountable.”
Financial institutions, including the US Treasury, declared in a combined statement that SVB depositors would have access to “all of their money” beginning on March 13th.
According to US Federal Reserve officials, the “core objective” of the actions was to reassure bank customers that they would have enough money “to meet payroll, to keep their businesses running, and to ensure households are able to pay the rent or the mortgage, or any other expenses,” on Sunday evening.
The Fed declared it would provide banks with additional funding to help them satisfy the needs of depositors, including withdrawals.
The agencies stated, “We are taking decisive actions to safeguard the US economy by enhancing public confidence in our banking system.
As of December 31, Signature Bank, a commercial bank with New York state charter and FDIC insurance, had total assets of about $110.36 billion and total deposits of about $88.59 billion, according to a second statement from the New York Department of Financial Services.
An inquiry for comment was not quickly answered by Signature Bank representatives.
After laying out a plan to raise capital, Silicon Valley Bank suddenly collapsed on Friday, becoming the largest US lender to fail in more than a decade. Due to the bank’s huge loss on the sale of its securities during a period of increasing interest rates, investors and depositors quickly started withdrawing their funds. Investors and savers attempted to withdraw $42 billion just on Thursday.
To solve the problems with the defunct Silicon Valley Bank and prevent a possible contagion from affecting other lenders, US regulators are working against the time.
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