Biden made a statement regarding the actions aimed at increasing confidence in the banking system.
Stating that his instructions worked diligently to resolve issues at Silicon Valley Bank (SVB) and Signature Bank over the weekend, Biden expressed his satisfaction with the swift resolution of a solution that protects American workers and small businesses and keeps the financial system safe.
Emphasizing that the solution also ensures that taxpayers’ money is not put at risk, Biden pointed out that American people and businesses can access bank deposits when they need it.
Pointing to what needs to be done to avoid similar problems again, Biden said, “I am determined to hold those responsible for this mess fully accountable and continue our efforts to strengthen the supervision and regulation of the larger banks so that we do not fall into this situation again. Tomorrow morning, we will learn how to maintain a resilient banking system to protect our historic economic recovery. I’ll make statements about what we’re going to do.” used the phrases.
Decisions on the protection of deposits were announced
The US Treasury Department, the US Federal Reserve (Fed) and the US Federal Deposit Insurance Corporation (FDIC) announced the decisions taken on the protection of deposits after the bankruptcy of the SVB and announced that SVB customers will be able to access their deposits from Monday.
It was stated that all depositors of New York-based Signature Bank would also be integrated, and it was announced that taxpayers would not bear any losses related to this bank, as in the SVB decision.
The Fed also announced that it would provide additional financing to eligible depository institutions to help banks meet the needs of all depositors.