Within hours after the failed Silicon Valley Bank (SVB) was auctioned off, US President Joe Biden took the podium to soothe concerns in the US and throughout the world. He assured all that Our banking system was “safe”.
“Americans can have confidence that the banking system is safe. Your deposits will be there when you need them,” Biden declared in televised remarks from the White House following the fall of Silicon Valley Bank and the federal takeover of a second bank.
While the government is guaranteeing that SVB depositors receive their money, “no losses will be borne by the taxpayers,” Biden said. “The money will come from the fees that banks pay into the deposit insurance.”
Biden strongly urged the US Congress to enact tighter banking laws and regulations. He claimed that “tough” precautions put in place following the 2008 financial crisis were undone during the presidency of his predecessor, Donald Trump.
“I’m going to ask Congress and the banking regulators to strengthen the rules for banks to make it less likely this kind of bank failure would happen again,” Biden said.
US president stated unequivocally that the repercussions of The failure will rest squarely
The US president stated unequivocally that the repercussions of The failure will rest squarely on the shoulders of those responsible for the catastrophe. He went on to say that the government’s quick response over the weekend was not a bank bailout, as it was in 2008.
“We must get the full accounting of what happened and why, (so) those responsible can be held accountable,” he said. Not only will taxpayers not be liable for covering the deposits, but “the management of these banks will be fired,” he said. Once a bank is taken over by the government, “the people running the bank should not work there anymore.”
Biden made it clear that investors who bought into SVB will not be bailed out.