Banking crisis:President Joe Biden says taxpayer funds won't be used to bail out SVB, Signature bank [View all]

[BumRushDaShow]

Last edited Mon Mar 13, 2023, 11:30 AM - Edit history (3)

Source: USA Today

WASHINGTON – President Joe Biden attempted to calm market and taxpayer jitters on Monday morning, saying that Americans can have "confidence" in the banking system after the collapse of Silicon Valley Bank.

"Americans can have confidence that the banking system is safe," Biden said at the White House. "Your deposits will be there when you need them." Biden said "no losses" would be borne by taxpayers, and the money would come from the fees that banks pay into the Deposit Insurance Fund.

The Federal Deposit Insurance Corporation, or FDIC, took control last week of SVB's assets after the bank ran out of cash. Federal regulators also assessed over the weekend that Signature Bank of New York presents a systemic risk and took it over. Biden said Monday that managers of the banks would be fired, and investors would not be protected.

Customers of the banks, including small businesses that need to make payroll, will have immediate access to their money, the president said. "Every American should feel confident that their deposits will be there, if and when they need them," Biden said.

Read more: https://www.usatoday.com/story/news/politics/2023/03/13/silicon-valley-signature-bank-collapse-joe-biden-taxpayer-funds/11463729002/

---

This seems to be the only (non-tabloid) article to make mention that Biden's remarks included the fact that Signature's management "will be fired".

Signature was a primary crypto-bank.


Article updated.

Previous articles/headline -

WASHINGTON - President Joe Biden attempted to calm market and taxpayer jitters on Monday morning, saying that Americans can have "confidence" in the banking system after the collapse of Silicon Valley Bank.

"Americans can have confidence that the banking system is safe," Biden said at the White House. "Your deposits will be there when you need them."

Biden said "no losses" would be born by taxpayers, and the money would come from the fees that banks pay into the Deposit Insurance Fund.

Federal regulators also assessed over the weekend that Signature Bank of New York presents a systemic risk and said they were taking it over. Biden said Monday that managers of the banks would be fired, and investors would not be protected.

Banking crisis: President Joe Biden says taxpayer funds won't be used to bailout SVB, Signature bank

Original article -

WASHINGTON -- President Joe Biden attempted to calm market and taxpayer jitters on Monday morning, saying in remarks that Americans can have "confidence" in the banking system after the collapse of Silicon Valley Bank.

"Americans can have confidence that the banking system is safe. Your deposits will be there when you need them," Biden said from the White House. Biden said "no losses" would be born by taxpayers, and the money would come from the fees that banks pay into the Deposit Insurance Fund.

Federal regulators also assessed over the weekend that Signature Bank of New York presents a systemic risk and they were taking it over. Biden said that managers of the bank would be fired and investors would not be protected. Dow futures fell more than 300 points on Monday morning as the markets prepared to open.

Silicon Valley Bank's failure is the second largest since the 2008 financial crisis and came after struggling tech companies made a run on the bank, withdrawing cash at a rapid pace and forcing the bank into a position where it had to sell bonds at a loss to cover the withdrawals.