S. President Joe Biden affirmed that his country's banking system is sound and that Americans' money is safe, after regulators closed Silicon Valley Bank (SVB) and Signature Bank between Friday and Sunday, and financial authorities took steps to ensure depositors have access to all their funds.
Biden noted that the guarantees will not extend to investors. "They knowingly took a risk, and when the risk didn't pay off, they lost their money. That's how capitalism works," he concluded. As for the management of the collapsed banks, there will be no bailouts either; they will be fired.
Furthermore, the president reiterated that his administration's swift action in response to the SVB bankruptcy will not cost taxpayers, as it will be funded by bank deposit insurance contributions. "Taxpayers won't bear any losses. The money will come from the fees banks pay to the FDIC," he explained.
Biden also promised to strengthen banking regulations, recalling that stricter requirements for banks like SVB and Signature Bank had already been implemented during the Barack Obama administration, but that "unfortunately" they were relaxed in some respects under Donald Trump.
