“Americans can have confidence that the banking system is safe,” Biden said in a special address Monday afternoon.
Pres. Biden says those who invested in failed Silicon Valley Bank and Signature Bank will not be protected: “They knowingly took a risk and when the risk didn’t pay off, investors lose their money. That’s how capitalism works.” pic.twitter.com/3hVKFJqmZt
— ABC News (@ABC) March 13, 2023
“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 will be able to pay their employees and pay their bills,” Biden added.
The American Central Bank (Fed) has opened a special account with $25 billion (CZK 555 billion). (Not only) the full amount of deposits should be returned to clients of bankrupt banks from this money.
Shares of European banks continue to weaken due to the fall of the SVB, Chinese shares strengthened
Economic
Biden repeated that he does not intend to use taxpayers’ money to solve the situation. But the government will not protect investors because, according to him, no one is above the law.
Friday’s closing of Silicon Valley Bank became the largest U.S. bank failure since the collapse of Washington Mutual in 2008.
Then on Monday, the Federal Deposit Insurance Corporation (FDIC) took control of Signature Bank. All savers will be compensated and there will be no loss to taxpayers, the US Treasury and banking regulators added in a joint statement.
Meanwhile, US bank stocks continue to weaken. Shares of First Republic Bank of San Francisco are down 65 percent before markets open Monday, after shedding 33 percent last week. The second-largest bank in the United States, Bank of America, is down four percent in premarket trading, and American multinational financial services company Charles Schwab is down eight percent.
US banks are failing. However, according to analysts, the crisis of 2008 is not imminent
Economic
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