The collapse of Silicon Valley Bank (SVB) and Signature Bank on March 11th sent shockwaves throughout the traditional banking world. The overnight collapse impacted millions of businesses, venture capitalists, and bottom-line investors alike.
However, United States President Joe Biden has assured taxpayers that they would not feel the burn as the federal government takes action to protect depositors.
Federal government takes action to protect SVB and Signature depositors
The federal government’s proactive approach to minimizing damage was appreciated by many, but concerns were raised that taxpayers would ultimately suffer the depositors’ bailout.
On March 13th, Biden took to Twitter to address those concerns, stating that people’s deposits would be safe at no cost to the taxpayer. While Biden’s followers on Twitter were not completely sold on this idea, he remains committed to holding the responsible parties accountable for their actions.
Asian and European bank shares slumped despite reassurances from the US president that the financial system in America is safe following the collapse of two US lenders. Investors fear that other lenders may still be hit by the fallout.
Biden has sought to dispel fears over a potential financial crisis following the rapid collapse of two major United States banks, saying customers would be protected and can trust that the country’s banking system is “safe.”
During a brief news conference at the White House on March 12th, Biden stated that he would seek to hold those responsible to account and push for better oversight and regulation of larger banks.
In response to the collapse of SVB and Signature Bank, the federal government has taken swift action to protect depositors. Biden has pledged to hold the responsible parties accountable and push for better oversight and regulation of larger banks.
The government’s proactive approach to minimizing damage is being appreciated by many.
Biden’s commitment to protecting depositors has been well-received by businesses, venture capitalists, and bottom-line investors. People’s deposits will be safe at no cost to the taxpayer. Nevertheless, concerns remain that other lenders may still be hit by the fallout.
Despite reassurances from Biden that America’s financial system is safe, bank shares in Asia and Europe have slumped. Investors fear that other lenders may still be hit by the fallout of the collapse of SVB and Signature Bank. The falls come after authorities moved to protect customer deposits.
The collapse of SVB and Signature Bank has sent shockwaves throughout the traditional banking world. While the federal government has taken swift action to protect depositors, concerns remain that other lenders may still be hit by the fallout.
Biden says he remains committed to holding the responsible parties accountable and pushing for better oversight and regulation of larger banks.
