President Joe Biden on Monday reassured Americans that the nation’s banking system is safe after Silicon Valley Bank collapsed last week and said there would be accountability for financial executives.
The president’s actions come after the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corporation announced on Sunday evening that depositors for Silicon Valley Bank would have access to their money on Monday.
“No losses, and this is an important point, no losses will be borne by the taxpayers,” the president said. “Instead the money will come from the fees that banks pay into the deposit insurance fund.”
In addition, the FDIC took control of the assets of Signature Bank’s assets. The president said that Americans should feel confident that their money would be available when they need it.
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“Thanks to the quick action of my administration over the past few days, Americans can have confidence that the banking system is safe,” Mr Biden said. “Deposits will be there when you need them. Small businesses across the country that deposit accounts at these banks can breathe easier knowing they can pay their workers and pay their bills.”
The president also said that the management of the banks would be fired.
“If the bank is taken over by FDIC, the people running the bank should not work there anymore,” Mr Biden said.
In addition, he added that Silicon Valley Bank’s investors would not be protected.
“They knowingly took a risk and when the risk didn’t pay off, investors lose their money,” he said. “That’s how capitalism works.”
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