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.