President Joe Biden assured his citizens that the US banking system remained safe after the rapid collapse of Signature Bank and Silicon Valley Bank.
On the morning of March 13 (local time), President Joe Biden said at the White House that:
“People can rest assured that our American banking system is safe. All customers who have deposited money in these banks will be protected and get their money back from today. I assure you that we will continue to do whatever is necessary to bring the situation under control.”
“The management of these banks will be fired,” President Biden says following back-to-back bank failures. https://t.co/hsB37sB2uC pic.twitter.com/AoSvc0ZaLM
— CNN (@CNN) March 13, 2023
Mr. Biden also repeated his earlier statement that US officials will not cause any harm to workers and small businesses affected, while refusing to bail out investors and bondholders of the US. Silicon Valley Bank (SVB). This solution also ensures that taxpayers’ money is not at risk.
The US President also pledged to hold those involved accountable and accountable for the past scandals and strengthen supervision of the financial system to prevent this situation from happening again.
“The management of Signature Bank and Silicon Valley Bank will be fired, and investors of these banks will not receive support from the government.”
Mr. Biden’s speech, US Treasury Secretary Yellen and other swift moves announced by officials over the weekend, all aimed at preventing the collapse of Silicon Valley Bank.
Though little-known outside of Silicon Valley, SVB is a commercial bank that provides loans to nearly half of US tech startups and healthcare companies. Currently, this bank is managing more than 200 billion USD in assets became the largest US bank to fail following the 2008 financial crisis. Thus, the collapse of SVB drew global attention to the extent and knock-on effect it could have on the banking and technology industries.
California officials and the Federal Deposit Insurance Corporation (FDIC) had to intervene, close SVB, confiscate and liquidate assets right on March 10after the mass withdrawal of investors. On the morning of March 12, the New York State Administration had to Order to close Signature Bank (SB)making this the third largest bank failure in US history.