March 13, 2023 (MLN): In the wake of the collapse of Silicon Valley Bank (SVB), President Joe Biden addressed the American public on Monday to assure them that the banking system remains secure.
He also called for tougher regulations to prevent future crises.
During his televised remarks from the White House, Biden stated that Americans can have confidence in the safety of the banking system, with their deposits guaranteed to be available when needed.
The government will ensure that SVB depositors receive their money back, with no losses being borne by taxpayers.
Biden challenged Congress to enact more stringent regulations to make it less likely for bank failures to occur again. He emphasized that the consequences should fall on those responsible and that the government's rapid response over the weekend was not a bailout, as happened in 2008.
The President also made clear that the management of these banks will be fired, and those responsible will be held accountable.
Investors who bought into SVB were not getting bailed out, as they knowingly took a risk, and when the risks did not pay off, investors lost their money.
As Biden seeks to tighten regulations, he stressed the importance of protecting taxpayers and preventing financial crises from happening in the future.
