SVB collapse: Biden reassures Americans 'the banking system is safe'

President Joe Biden sought to reassure the country Monday that the "banking system is safe" and that taxpayers would not bear any losses following the failures of Silicon Valley Bank and Signature Bank last week.

On Sunday, the Biden administration guaranteed Silicon Valley Bank deposits, including uninsured amounts, so customers will have access to their money as soon as Monday after the tech-focused institution collapsed last week. The intervention, along with the decision to wind down Signature Bank, is aimed at avoiding additional bank runs and helping business clients remain operational.

A law enforcement official, behind, stands in an entryway to a branch of Silicon Valley Bank, Monday, March 13, 2023, as customers and bystanders line up outside the branch, in Wellesley, Mass.

"All customers who had deposits at these banks can rest assured, rest assured they'll be protected and they'll have access to their money as of today. That includes small businesses across the country that bank there and need to make payroll, pay their bills, and stay open for business," Biden declared Monday morning. "This is an important point: No losses will be borne by the taxpayers. I'm going to repeat that. No losses will be borne by the taxpayers. Instead, the money will come from the fees that banks pay into the Deposit Insurance Fund. Because of the actions of that, 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."