In his statement on the latest developments in the US banking system, Biden thanked the Bank of Silicon Valley (SVB) and the rapid actions taken by the management in the last few days regarding the bankruptcy of Signature Bank.
Expressing that Americans can believe that the banking system is secure, Biden said, “Your deposits will be there when you need them. Small businesses that deposit accounts with these banks across the country can breathe easier knowing that they can pay their employees and pay their bills.”
Biden recalled that the US Federal Deposit Insurance Corporation (FDIC) took over the control of SVB and Signature Bank, and that Treasury Secretary Janet Yellen and a team of banking regulators took action.
Referring to the steps taken in this context, Biden stated that customers who have deposits in these banks will be able to access their money as of today.
Bank executives being fired
Joe Biden emphasized that taxpayers will not suffer any loss from these transactions and noted that the money will be covered by the fees paid to the FDIC.
Stating that the managers of the banks in question will be fired, Biden said, “If the bank is taken over by the FDIC, the people who manage the bank should no longer work there.”
Pointing out that bank investors will not be protected because they knowingly take risks, Biden said that investors lose their money when the risk does not work, and that is how capitalism works.
Pointing out that there are important questions about how the banks came to this situation, Biden noted that a full account of why the perpetrators can be held responsible should be taken.
Emphasizing the need to reduce the risk of such events happening again, Biden said, “Under the Obama and Biden government, we have put strict conditions on banks like the SVB and Signature Bank to ensure that a crisis we saw in 2008 does not happen again. Unfortunately, the last administration rolled back some of these requirements. “I will ask Congress and banking regulators to strengthen rules for banks to reduce the likelihood of such bankruptcies happening again, and to protect Americans’ businesses and small businesses,” he said.
Underlining that they will do everything necessary in this framework, Biden talked about the economic developments that the USA has made in the last two years and said that this progress should be continued.