NEW YORK (AP) — President Joe Biden on Monday informed U.S. residents the nation’s monetary methods are sound, following the swift and beautiful collapse of two banks that prompted fears of a broader upheaval.
“American can trust that the banking system is secure,” he mentioned from the Roosevelt Room earlier than a visit to the West Coast. “Your deposits shall be there while you want them.”
U.S. regulators closed the Silicon Valley Financial institution on Friday after it skilled a conventional financial institution run, the place depositors rushed to withdraw their funds suddenly. It’s the second largest financial institution failure in U.S. historical past, behind solely the 2008 failure of Washington Mutual.
In an indication of how briskly the monetary bleeding was occurring, regulators introduced that New York-based Signature Financial institution had additionally failed.
The president, talking from the Roosevelt Room shortly earlier than U.S. markets opened, mentioned he’d search to carry these accountable and pressed for higher oversight and regulation of bigger banks. And he promised no losses could be borne by taxpayers.