Joe Biden Reacts As Signature Bank Closed After Silicon Valley Bank Failure
US President Joe Biden on Sunday vowed to hold “fully accountable” the people responsible for the failure of Silicon Valley Bank and a second financial institution, Signature Bank. He, however, sought to reassure Americans that their deposits are safe.
“I am firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again,” Biden said in a statement.
“The American people and American businesses can have confidence that their bank deposits will be there when they need them,” the president added.
Biden said he planned to speak about the US banking system on Monday morning, to reassure Americans after the failures of Silicon Valley Bank and Signature Bank.
“I will deliver remarks on how we will maintain a resilient banking system to protect our historic economic recovery,” he said Sunday night in a statement that also included Biden’s promise of “holding those responsible for this mess fully accountable.”
In a joint statement, financial agencies, including the US Treasury, said SVB depositors would have access to “all of their money” starting on Monday, March 13.
The “core goal” of the moves was to reassure bank customers they would have their money “to meet payroll to keep their businesses operating, and to make sure households are able to pay the rent or the mortgage or any of their other bills,” US Federal Reserve officials told reporters Sunday night.
The Fed announced it would make extra funding available to banks to help them meet the needs of depositors, which would include withdrawals.
“We are taking decisive actions to protect the US economy by strengthening public confidence in our banking system,” the agencies said.
Why US regulators shut Signature Bank?
Signature Bank, a New York state-chartered commercial bank that’s FDIC-insured, had total assets of about $110.36 billion and total deposits of roughly $88.59 billion as of December 31, the New York Department of Financial Services said in a separate statement.
Signature Bank representatives didn’t immediately respond to a request for comment.
Silicon Valley Bank abruptly became the biggest US lender to fail in more than a decade on Friday, unraveling in less than 48 hours after outlining a plan to shore up capital. The bank took a huge loss on sales of its securities amid rising interest rates, spooking investors and depositors who rapidly began pulling their money. On Thursday alone, investors and depositors tried to yank about $42 billion.
US regulators are racing against the clock to find solutions for failed Silicon Valley Bank and stop a potential contagion from spreading to other lenders.