US President Joe Biden stated that they will continue their efforts to strengthen the supervision and regulation of larger banks to avoid situations such as the bankruptcy of Silicon Valley Bank (SVB) and Signature Bank.
Biden made a statement on actions to increase confidence in the banking system.
Stating that under his instruction, Biden worked diligently over the weekend to resolve the problems at Silicon Valley Bank (SVB) and Signature Bank, Biden expressed his satisfaction that a quick solution was reached that protects American workers and small businesses and keeps the financial system safe.
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Biden emphasized that the solution also ensures that taxpayers’ money is not put at risk, noting that the American people and businesses will be able to access their bank deposits when they need them.
Pointing to what will be done to avoid similar problems again, Biden said, “I am committed to holding the perpetrators of this mess fully accountable and continuing our efforts to strengthen supervision and regulation of larger banks so that we do not end up in this situation again. Tomorrow morning, I will make statements on how we will maintain a flexible banking system to protect our historic economic recovery.”
Decisions on deposit protection were announced
The US Treasury Department, the US Federal Reserve (Fed) and the US Federal Deposit Insurance Corporation (FDIC) announced the decisions taken to protect deposits following the bankruptcy of SVB and announced that SVB customers will be able to access their deposits as of Monday.
It was also stated that all depositors of New York-based Signature Bank would be made whole, and it was announced that taxpayers would not cover any losses related to this bank, as in the SVB decision.
The Fed also announced that it would provide additional financing to eligible depository institutions to help banks meet the needs of all depositors.
