Biden Insists Financial System Is ‘Safe’ Following Failures of SVB, Signature Bank

Contact Your Elected Officials
The Epoch Times Header

President Joe Biden on Sunday issued a statement on the failures of Silicon Valley Bank (SVB) and Signature Bank, insisting that the U.S. financial system is “safe” after the Federal Reserve rolled out an emergency lending program to stabilize the banking system.

It comes after the Federal Deposit Insurance Corporation (FDIC) expanded its deposit insurance coverage at the two failed banks so depositors won’t lose any money.

Biden said in a statement on Sunday that Treasury Secretary Janet Yellen and his top economic adviser Lael Brainard worked with banking regulators to mitigate any potential financial fallout from the failures of SVB and 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.

“The American people and American businesses can have confidence that their bank deposits will be there when they need them,” Biden added, while pledging to hold those “responsible for this mess” fully accountable.

U.S. financial authorities worked on several fronts to stem any potential fallout from the twin failures, which sparked fears of bank runs and contagion that could threaten broader financial system stability.

‘Systemic Risk Exception’

The FDIC said it will carry out the orderly wind-down of SVB—in a process known as resolution—in a way that “fully protects all depositors” on the basis of a special “systemic risk exception” that lets the FDIC temporarily expand its deposit insurance coverage over and above what’s normally a $250,000 per account cap.

“Depositors will have access to all of their money starting Monday, March 13,” the FDIC said in a joint statement with the Fed and Treasury.

This means that all depositors are set to receive all their money back, rather than facing the prospect of having to take losses on the uninsured portions of their deposits, normally anything above the $250,000 limit.

The same “systemic risk exception” has been adopted for Signature Bank, which was closed Sunday by New York state chartering authorities.

By Tom Ozimek

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

How The Big Beautiful Bill Will Keep Louisiana’s Energy Industry Strong

Renewable or not, our federal govt should not be rigging the deck against any energy sources, especially nuclear power that is both clean and consistent.

On Declaring War, Congress De Facto Amended the Constitution

Congress has de facto amended the Constitution by 55 years of refusing to debate matters of war and peace.

AOC – Acting On Cue

It is easy to dislike Alexandria Ocasio-Cortez (AOC), also known as Sandy Cortez, because she is fraudulent and not to smart.

LGBTQ™ Propaganda Roundup: Tampon Tim Walz Fails the Test

LGBTQ™ Propaganda Roundup: Nip/tucking the latest social engineering fisted...

AI is Now an Existential Threat

We now see evidence that artificial intelligence is an existential threat to our future. It is coming to take American jobs!

DOJ Sues LA Over Sanctuary City Policies: 4 Things to Know

DOJ filed a lawsuit against Los Angeles over what it said are “sanctuary city” policies that shield illegal immigrants from deportation efforts.

Rep. Dusty Johnson Will Run for Governor of South Dakota

U.S. Rep. Dustin Michael “Dusty” Johnson has announced that he will run for governor of South Dakota during the general election to that office in 2026.

Moderna to Ask for Clearance for Combination COVID-Influenza Vaccine

Moderna is going to ask regulators to approve its combination vaccine against COVID-19 and influenza, the company said on June 30.

FBI Says It’s Uncovered ‘Largest Health Care Fraud’ in American History

FBI and DOJ said $15 billion in losses was reported in “largest health care fraud” investigation in U.S. history. Officials charged more than 300 people.

Canada-US Trade Talks Will End Until ‘Certain Taxes’ Are Dropped, Trump Stresses

Trade discussions between Canada and the United States will end “until such time as they drop certain taxes,” U.S. President Trump said in an interview.

Trump Says US to Send Tariff Letters to Trade Partners Before July 9 Deadline

President Donald Trump said Sunday he will soon send letters to trading partners detailing the tariffs to be imposed on their exports to the United States.

Trump Says He Found a Buyer for TikTok

President Trump said he found a buyer for the Chinese-owned short video application TikTok, and that he will reveal the group in roughly two weeks.

Termination of ‘Wasteful Contracts’ Saves US Government $470 Million Last Week: DOGE

Over the past seven days, various government agencies have terminated 312 “wasteful contracts” with a ceiling value of $2.8 billion, the DOGE said.
spot_img

Related Articles