The latest on the Silicon Valley Bank collapse: Live updates
09:43 ET, March 13, 2023
Taxpayers will not suffer any loss, says Biden as he describes measures to keep the banking system safe
From CNN’s Aditi Sangal
(Saul Loeb/AFP/Getty Images)
President Joe Biden addressed the nation Monday to reassure Americans that the banking system is safe following the collapse of Silicon Valley Bank and Signature Bank. In his speech, he highlighted the immediate action his administration has taken.
Customers’ deposits will be protected: Customers will “have access to their money starting today. That includes small businesses across the country that bank there and need to make payroll, pay their bills and stay open for business,” Biden said, adding that no losses would be incurred taxpayers.
“Instead, the money will come from the fees that the banks pay to the deposit insurance fund,” he explained.
The management of these banks will be fired: “If the bank is taken over by the FDIC, the people who run the bank should no longer work there,” Biden said.
Investors in the banks will not be protected: “They deliberately took a risk, and when the risk didn’t pay off, investors lose their money. That’s how capitalism works,” Biden added.
Logs a full account of what happened: Biden stressed the importance of holding those responsible accountable. “In my administration, no one is above the law,” he said.
Reduces the risk of this happening again: Referring to the requirements put in place under the Obama administration, including the Dodd-Frank law, Biden said there were rules in place to prevent a repeat of 2008. But he added that the Trump administration rolled back some of those the regulations back.
“I’m going to ask Congress and banking regulators to strengthen the rules for banks, to make it less likely that this type of bank failure will happen again,” he said. “And to protect American jobs and small businesses.”
Assuring that although the banking system is safe, he also said that the administration will not stop there.