The President of the United States Joe Biden has vowed to hold those responsible for the failure of Silicon Valley Bank and Signature Bank while assuring Americans that their deposits are safe.
On Mar. 12, the New York District of Financial Services (NYDFS) took possession of crypto-friendly Signature Bank. The Federal Reserve also stated that the closing of Signature Bank was made in order to protect the U.S. economy and strengthen public confidence in the banking system.
It also announced a $25 million fund aimed at backstopping certain banks that could face liquidity issues in the future.
U.S. President Joe Biden noted to his 29.9 million Twitter followers on Mar. 13, stating that he’s pleased that the agencies have “reached a solution that protects workers, small businesses, taxpayers and our financial system.”
At my direction, @SecYellen and my National Economic Council Director worked with banking regulators to address problems at Silicon Valley Bank and Signature Bank.
I’m pleased they reached a solution that protects workers, small businesses, taxpayers, and our financial system. https://t.co/CxcdvLVP6l
— President Biden (@POTUS) March 13, 2023
The President added he was also “firmly committed” to holding those responsible for the mess “fully accountable.” He added that he will “have more to say” in an address on Monday, local time.
Meanwhile, a host of other United States politicians have also shared praise over the recent federal regulator actions aimed at stemming contagion from the recent banking collapses.
U.S. Senator Sherrod Brown and Representative Maxine Waters said they were also pleased to see that both insured and uninsured SVB depositors would be covered, according to Mar. 12 statement by the U.S. Senate Banking and Housing Committee:
Today’s actions will enable workers to receive their paychecks and for small businesses to survive, while providing depository institutions with more liquidity options to weather the storm.”
“As we work to better understand all of the factors that contributed to the events of the last several days and how to strengthen guardrails for the largest banks, we urge financial regulators to ensure the banking system remains stable, strong, and resilient, and depositors’ money is safe,” the statement added.
Silicon Valley Bank depositors, both insured & uninsured, will be made whole by the plan from the FDIC, the Federal Reserve, the Treasury & the White House. And the Fed has created a new…
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