President Biden said for American’s to trust the banking system, even though three banks collapsed since last week.
Trust the Banks
On Monday, President Joe Biden reassured Americans that they should have trust in their banking system following his administration’s handling of the recent failures of Silicon Valley Bank (SVB) and Signature Bank.
The Santa Clara, California-based band collapsed last week and is now under the control of federal regulators. The SVB had been the 16th-largest bank in the U.S. prior to the bank run that led to its downfall.
Biden Addresses the Bank Collapse
During a public address on Monday, President Biden echoed a statement made by the FDIC and Treasury Department, affirming that the federal government would secure the depositors’ access to their funds in both Silicon Valley Bank (SVB) and Signature Bank.
However, he clarified that no such assurance is being extended to the banks’ investors, and that the administration has taken action by dismissing the leadership at both banks.
No Money is “Lost”
“No losses will be borne by the taxpayers,” Biden said.
“Instead, the money will come from the fees that banks pay into the deposit insurance fund. Because of the actions that our regulators have already taken, every American should feel confident that their deposits will be there if and when they need them.”
Biden delivered his Monday remarks in a short briefing before traveling to California, where he is set to announce the sale of nuclear submarines to Australia.
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