US President Joe Biden will speak about the current banking situation on Monday, following the Silicon Valley Bank (SVB) failure, according to a statement released by the White House.
“Tomorrow morning, I will deliver remarks on how we will maintain a resilient banking system to protect our historic economic recovery,” Biden said in a Sunday release, adding that he was “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.”
The president specified that at his direction, US Treasury Secretary Janet Yellen worked with banking regulators over the weekend to address problems with SVB and the New York-based Signature Bank.
“I am pleased that they reached a prompt solution that protects American workers and small businesses, and keeps our financial system safe. The solution also ensures that taxpayer dollars are not put at risk,” Biden said, adding that the “American people and American businesses can have confidence that their bank deposits will be there when they need them.”
Earlier on Sunday, Yellen said in a joint statement with Federal Reserve Board Chair Jerome Powell and Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg that the US Federal Reserve System was going to allocate additional funds to American banks to help them meet the needs of all their depositors. Depositors will have access to all of their money starting Monday, March 13, according to the joint statement.
Yellen, Powell and Gruenberg also specified that a systemic risk exception similar to the one made for SVB was also going to be made for Signature Bank, which was closed on Sunday by its state chartering authority.
The California Department of Financial Protection and Innovation announced on Friday that it was taking possession of SVB, citing inadequate liquidity and insolvency. The SVB became the largest bank to fail in the US after the 2007–2008 financial crisis.
According to the White House press pool, Biden told reporters on Sunday that he was going to answer questions about the banking crisis “tomorrow morning.”
Source: Sputnik
