Biden assured US citizens that “the banking system is safe”

Biden emphasized that his administration took immediate action after the SiliconValleyBank and SignatureBank incidents.

After the collapse of American banks SiliconValleyBank and SignatureBank, the President of the United States of America, Joe Biden, addressed the nation on Monday, March 13 and said “the American people can rest assured that the banking system is safe.” This was reported by CNN.

“Your deposits will be there (at Silicon Valley Bank and Signature Bank – ed.) when you need them. Small businesses across the country with deposit accounts at these banks can breathe easier because they know they can pay their workers and pay their bills,” Biden said.

He emphasized that his administration acted immediately after the banking incident.

Biden assured that in addition to guaranteeing the protection of customer deposits, the money will also come from fees paid by banks to the deposit guarantee fund, and that taxpayers will not suffer losses.

The US President added that the management of bankrupt banks would be removed and investors in those banks would not be protected.

According to him, referring to the requirements established under the administration of former US President Barack Obama, the rules were put in place to avoid a repeat of the situation in 2008. However, some of them were removed by the administration of former President Donald Trump.

“I will ask Congress and banking regulators to strengthen the rules for banks to reduce the likelihood of repeated bankruptcies,” Biden said.

It can be recalled that the US authorities closed the New York Signature Bank following the larger Silicon Valley Bank (SVB).

As reported, the collapse of a major crypto industry lender Silvergate Capital caused Bitcoin to crash.

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