President Joe Biden said Monday that Americans should “remain reassured” after his administration sought to ease uncertainties about the banking system in the wake of the collapse of Silicon Valley Bank last week, the second-largest bank failure in US history.
The President talked about the actions his administration has taken to assure Americans that the banking system is safe.
“Thanks to my administration’s swift action over the past few days, Americans can be confident that the banking system is safe,” Biden said. “Your deposits will be there when you need them.”
Biden explained that he has focused his team on his actions to protect American workers and small businesses and protect customer deposits and not put taxpayer dollars at risk, hold those responsible accountable, and protect investors in the bank. instructed to elaborate.
The president said the management of SVB and Signature Bank, the other institutions involved in the scheme, would be fired. “If the bank is taken over by the FDIC, the people who run the bank should not be working there,” he said.
Biden called for a “full accounting” of the SVB shutdown and why “those responsible can be held accountable.”
The president said, “In my administration, no one is above the law. And finally, I must reduce the risk of this happening again.”
The president said he would ask Congress and banking regulators to strengthen rules for banks “to make it less likely that this type of bank failure will happen again.”
“Americans can rest assured that our banking system is safe. Your deposits are safe. I can also assure you that we will not stop there – we will do whatever is needed.”
Biden’s comments come after federal regulators on Sunday evening moved to protect all deposits at SVBs ahead of the resumption of trading of global stock markets.
In a statement Sunday evening, the president said that under his direction, Treasury Secretary Janet Yellen and National Economic Director Lael Brainard had “worked diligently” with banking regulators to address the problems at Silicon Valley Bank as well as Signature Bank. did”, which was also taken up by federal authorities. control and had become a center for cryptocurrency financing.
“I’m pleased they reached a quick solution that protects American workers and small businesses and keeps our financial system safe,” Biden said. The solution also ensures that taxpayer dollars are not put at risk. The American people and American businesses can have confidence that their bank deposits will be there when they need them.
“I am committed to holding those responsible for this mess fully accountable and to continuing my efforts to strengthen oversight and regulation of large banks so that we are not in this situation again,” he said.
The US Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation said the government will return Silicon Valley bank deposits that exceed the federally insured limit of $250,000, addressing concerns about uninsured funds held at the nation’s 16th largest bank. Whose assets were 209 billion dollars. and over $175 billion in deposits.
“Depositors will have access to all their money from Monday, March 13,” the agencies said in a joint statement on Sunday evening. “No damages associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.”
Yellen called a meeting of the Financial Stability Oversight Council into executive session via videoconferencing on Sunday. During the meeting, the Council heard updates from the Federal Deposit Insurance Corporation, the Federal Reserve Board, and the Treasury Department on the actions being taken to stabilize the financial system and protect depositors.
The Biden administration also held a briefing for senators on the situation on Sunday night. Some Senate Republicans on the banking committee claimed they were not invited to the all-member briefing, with ranking member Tim Scott, a spokesman for the RSC, telling NBC News that Treasury Department officials acknowledged on the call that they Notify all offices that had failed.
“It is unacceptable that Senate Republicans were excluded from Treasury’s briefing to Congress this evening. There is a lack of transparency and accountability on the part of the Biden administration,” tweeted the committee GOP. The responsibility rests with the administration.”
A Treasury official called the claim false and said that invitations were sent to Republican leadership in the House and Senate, noting that several Republican members attended the briefing. The official says more briefings are expected in the coming days.
On Sunday, California lawmakers were told on a briefing call that the top priority of the Treasury Department and the Federal Deposit Insurance Corp. is to make a sale after the SVB closure, two people on the call said. The sources said lawmakers were also informed on the call that Treasury is working through options for uninsured accounts that exceed the $250,000 limit.
Additionally, a group of Democratic lawmakers urged federal officials to act swiftly to protect depositors in a letter to Yellen, Federal Reserve Chair Jerome Powell, FDIC Chairman Martin Gruenberg and Acting Comptroller of the Currency Michael Hsu on Sunday. Did.
Brian Cheung, rob ville, Alice Perlmutter-Gumbiner And Julie Sirkin Contribution,