The president of the United States has promised to tighten banking rules after the collapse of two US banks in recent days, Silicon Valley Bank (SVB) and Signature Bank.
“I will ask Congress and banking regulators to tighten the rules for banks so that these kinds of failures are less likely to happen again,” Joe Biden said at a White House press conference Monday.
Joe Biden also left a reassuring message to depositors: “Americans can trust the soundness of the banking system.” “Your deposits will be available when you need them.”
“Small businesses across the country that have deposit accounts at these banks can breathe easier knowing they’ll be able to pay their employees and pay their bills. There will be no losses for taxpayers. The money will come from the Guarantee Fund paid by the banks.”
The US Federal Reserve (Fed) announced Monday that it will provide “additional financing” to US banks to help ensure that institutions have the ability to meet the needs “of all their depositors.”
In addition, Biden revealed that “the administrators of the two banks will be fired” and that the two banks will be controlled by the State. “Investors in these banks will not be protected, they know the risks they are taking and when the risk does not pay, investors lose money. That’s how capitalism works.”
The failure of Signature Bank, which primarily provides financial services to law firms and the crypto ecosystem, represented the second largest bank failure in US history after the collapse of Washington Mutual in 2008. As of late 2022, it had assets of 110,000. 36,000 million dollars (102,860 million euros) and deposits of 88,590 million dollars (82,570 million euros).
Source: TSF
