US moves to boost confidence in banking system
US President Joe Biden stated that they will continue their efforts to strengthen the supervision and regulation of larger banks in order not to encounter situations like the bankruptcy of Silicon Valley Bank (SVB) and Signature Bank again. Biden made a statement regarding the actions taken to increase confidence in the banking system. Stating that they worked diligently over the weekend to resolve the problems at Silicon Valley Bank (SVB) and Signature Bank under his instructions, Biden expressed his satisfaction that a quick solution was reached that protects American workers and small businesses and keeps the financial system safe. Biden emphasized that the solution also ensures that taxpayers' money is not put at risk, and drew attention to the fact that the American people and businesses will be able to access bank deposits when they need them. Pointing out what will be done to avoid similar problems again, Biden said, "I am determined to hold those responsible for this mess fully accountable and to continue our efforts to strengthen the supervision and regulation of larger banks so that we do not fall into this situation again. Tomorrow morning, I will make statements on how we will maintain a resilient banking system to protect our historic economic recovery." Decisions regarding the protection of deposits had been announced The US Treasury Department, the US Federal Reserve (Fed) and the US Federal Deposit Insurance Corporation (FDIC) had announced the decisions taken regarding the protection of deposits following the bankruptcy of SVB and announced that SVB customers would be able to access their deposits as of Monday. It was also stated that all depositors of New York-based Signature Bank would be made whole and it was announced that taxpayers would not cover any losses related to this bank, as in the SVB decision. The Fed had also announced that it would provide additional financing to appropriate depository institutions to help banks meet the needs of all depositors.