President Biden blamed the Trump administration for the weekend failures of Silicon Valley Bank and Signature Bank, while praising his administration’s “strong economic progress” over the last two years.
“During the Obama-Biden administration, we imposed stringent requirements on banks… to ensure that the 2008 financial crisis did not reoccur. Unfortunately, the previous administration repealed some of these requirements “Biden said this from the White House’s Roosevelt Room.
Biden went on to reassure the public that their deposits are safe and that the costs will not be borne by taxpayers. However, as TheBlaze previously reported, the Wall Street Journal editorial board stated that the guarantees for tech magnates’ uninsured deposits, combined with the Fed’s loans to big banks, constitute “a de facto bailout of the banking system, even as regulators and Biden officials have told us that the economy is great and there was nothing to worry about.”
“The financial system is secure. “Your deposits will be there when you need them,” Biden assured reporters before departing for California.
“Customers who had deposits in these banks can rest assured that their money will be safe and accessible today,” Biden added.
“No taxpayer losses will be borne,” Biden stated. “Instead, the funds will be raised through fees paid by banks to the insurance deposit fund.”
Biden stated that the executives of the affected banks would be fired.
“If the FDIC takes over the bank, the people running the bank should no longer work there,” he said.
“That’s how capitalism works,” Biden added, explaining that the investors in the banks who knowingly took a risk that did not pay off will not be protected.
Biden demanded a “full accounting of what happened and why,” saying those responsible must be held accountable. Furthermore, Biden stated that he would ask Congress to tighten banking regulations in order to reduce the likelihood of future bank failures.
Silicon Valley Bank was closed down by regulators on Friday due to liquidity concerns. On Sunday, regulators also closed the crypto-focused Signature Bank.
Treasury Secretary Janet Yellen stated on Sunday that Silicon Valley Bank and Signature Bank would not receive bailouts similar to those provided in 2008.
However, officials announced the same day that depositors would have access to “all their money” beginning Monday, according to a joint statement from Yellen, Fed Chair Jerome H. Powell, and FDIC Chairman Martin Gruenberg.
