Biden Says 'Banking System is Safe' After 2 Banks Fail
On Monday morning, President Joe Biden said that deposits and the banking system are safe after the collapse of Silicon Valley Bank.
The Details: The money to SVB depositors will come from bank fees paid into the Federal Deposit Insurance Corporation. It's not considered a bailout because bond and stockholders wouldn't be protected. Additionally, Biden is asking regulators and Congress to strengthen banking rules to make it less likely that this type of bank failure could happen again.
Key Quote: "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 said.
For Context: On Sunday, federal banking regulators began efforts to prevent Silicon Valley Bank's collapse from unleashing a nationwide run on the banking system, and New York-based Signature Bank was also shut down to contain fallout. With roughly $175.4 billion in deposits at the end of 2022, SVB's collapse has become the second-largest bank failure in U.S. history.
How the Media Covered it: Sources across the political spectrum covered SVB's collapse, with many pointing out the efforts to avoid a contagion of bank failures due to any lingering uncertainty and fear on the part of investors.
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From the RightSVB 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,...
From the CenterBiden Says Banking System Is Safe After Silicon Valley Bank Collapse
President Biden on Monday said the banking system is safe, as he stressed steps taken to limit the fallout from the collapse of Silicon Valley Bank and shore up confidence in the financial system.
“Thanks to the quick action of my administration over the past few days, Americans can have confidence that the banking system is safe,” Mr. Biden said in televised remarks.
Mr. Biden’s remarks came one day after federal regulators announced emergency measures to guarantee all depositors with money at Silicon Valley Bank following its failure, rather than the standard $250,000 in insured deposits....
From the LeftBiden emphasizes US banking system is safe after Silicon Valley Bank collapse
President Joe Biden on Monday underscored that the American banking system remains safe, laying out how his administration is taking action to contain Silicon Valley Bank’s collapse.
“Americans can rest assured that our banking system is safe. Your deposits are safe,” Biden said from the Roosevelt Room. “Let me also assure you we will not stop at this. We will do whatever is needed on top of all this.”
Biden used his speech – which was only announced Sunday night – to allay fears, directly explaining what he has instructed his...
June 1st, 2023
June 1st, 2023
June 1st, 2023