President Joe Biden is attempting to reassure Americans about the banking system following the collapse of Silicon Valley Bank.
While delivering remarks Monday, Biden said, “Thanks to the quick action of my administration over the past few days, Americans can have confidence that the banking system is safe.”
He added, “Your deposits will be there when you need them. Small businesses across the country that deposit accounts at these banks can breathe easier knowing they’re able to pay their workers and pay their bills.”
Biden stressed that “no losses will be borne by the taxpayers.”
The president went on, “Every American should feel confident that their deposits will be there if and when they need them.”
According to Biden, the management of the banks will be fired.
Additionally, he shared that investors would not be protected as they took a risk.
Watch Biden’s remarks below:
Biden: "Thanks to the quick action of my administration over the past few days, Americans can have confidence that the banking system is safe… no losses will be borne by taxpayers… the management of these banks will be fired… investors in the banks will not be protected" pic.twitter.com/3Rmv29dRvC
— Aaron Rupar (@atrupar) March 13, 2023
Yahoo! Finance pointed out Silicon Valley Bank’s collapse on Friday comes in at the second biggest bank failure in the nation.
New York-based Signature Bank was also shut down on Sunday following the collapse.
Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg issued a joint statement on the issue.
“Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system,” the statement reads.
It continues, “This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.”
The statement shares that depositors will “have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.”
The officials are confident the banking system “remains resilient and on a solid foundation, in large part due to reforms that were made after the financial crisis that ensured better safeguards for the banking industry.”
Concluding the statement, they wrote, “Those reforms combined with today’s actions demonstrate our commitment to take the necessary steps to ensure that depositors’ savings remain safe.”
