Biden: Americans can “rest assured” banking system is secure

OAN Geraldyn Berry
UPDATED 1:33 PM – Monday, March 13, 2023

On Monday, President Joe Biden assured Americans that all of the country’s financial institutions are safe. Biden also said that his administration has an emergency plan in place to deal with the potential failure of two banks.

“Americans can have confidence that the banking system is safe,” Biden said. “Your deposits will be there when you need them. Small businesses across the country that deposit accounts at these banks can breathe easier knowing they’ll be able to pay their workers and pay their bills, and their hard-working employees can breathe easier as well.”

Two banks have closed, so this statement is timely.

After a surge in cash withdrawals by depositors due to concerns over the bank’s balance sheet, California regulators shut down Silicon Valley Bank Friday. SVB’s collapse was described as the second most significant bank failure in US history, with losses of over $2 billion.

Signature Bank, New York had also been bankrupt. Signature Bank, with more than $110 trillion in assets is the third largest bank failure in American history. 

The White House was the venue for the president’s speech. He pledged to hold people accountable and called for tighter regulation and control of large banks. He also promised that he would not allow any bank to be taken advantage of. “no losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.”

Biden made mention of investors in the bank and stated that it was time to fire the management of banks. Biden was referring to Federal Deposit Insurance Corp., which is the agency responsible for maintaining stability in the banking system.

“They knowingly took a risk, and when the risk didn’t pay off, investors lose their money. That’s how capitalism works,” Biden said.

On Sunday, the Treasury Department and FDIC announced that all Silicon Valley Bank clients would have their money protected.

The plan states that depositors at Signature Bank and Silicon Valley Bank will be able to access their funds beginning Monday. This applies even if they have more than $250,000 in insurance.

“This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth,” The agencies made a joint statement.

After his remarks on the recent event, the POTUS will travel to San Diego, California for meetings with the Australian Prime Minister Anthony Albanese, and the British Prime Minister Rishi Unak.