As Two Banks Collapse, Biden states US Banking System is Secure

Mint Message

With the fall of US bank stocks last Monday and the collapse of the California-based Silicon Valley Bank, it is not surprising that there are plenty of people who have no faith in the American banking system right now & see it as a weak system. However, the current United States president Joe Biden worked to reassure the American people that the U.S. banking system is secure and that taxpayers would not be bailing out investors. In a five-minute statement that Biden gave from the White House, he stated:

" Americans can have confidence the banking system is safe. Your deposits are safe. No losses will be borne by taxpayers. Managers of these banks will be fired. Investors in these banks will not be protected. We must get a full accounting of what happened. I am firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again."

Last Monday, the United States Federal Reserve - the central bank for the USA - announced that it would review its oversight of Silicon Valley Bank in the wake of its failure. This failure comes at a time when United States banks have reported over six hundred twenty billion US Dollars worth of paper losses that have been caused by rising interest rates.

"We need to have humility and conduct a careful and thorough review of how we supervised and regulated this firm, and what we should learn from this experience," states Fed vice chair for supervision Michael Barr.

Comments / 31

Published by

People who love to write about topics like U.S. history, technology news, and a bit of philosophy.

Wingate, NC

More from Mint Message

Comments / 0