President Joe Biden said on Monday that the financial system had been stabilized thanks to the “quick response” of his administration after several banks failed over the weekend.
You will always be able to get your deposits. President Joe Biden has said that small businesses can rest easy knowing they can pay their employees and vendors if they put their money into these institutions. The people who work hard for them also deserve the best.
Joe Biden, the President, has said that he is more worried about keeping other banks from failing. He went on to say, “During the Obama-Biden administration, we put strict rules on institutions like Silicon Valley Bank and Signature Bank, including the Dodd-Frank Act,” all to prevent another financial disaster like the one in 2008. Several of these requirements were put off by the last government, which is a shame.
Silicon Valley Bank is selling $1.75 billion worth of shares after losing a lot of money on the sale of a $21 billion bond portfolio. President Joe Biden has said something about this, and venture capital firms and entrepreneurs with ties to the company are worried. SVB is the 16th largest bank in the United States, and it is by far the biggest in Silicon Valley. Over half of the technology and healthcare companies in Silicon Valley that are funded by venture capital depend on it.
The California Department of Financial Protection and Innovation has shut down SVB, the FDIC learned on Friday.
Janet Yellen, who is the secretary of the Treasury, Jerome H. Powell, who is the chair of the Federal Reserve Board, and Martin J. Gruenberg, who is the head of the FDIC, all said in a statement that state officials in New York closed another bank on Sunday.
Signature Bank in New York, New York, was closed today by the state chartering board. A press release said, “We are also announcing a similar systemic risk exception for Signature Bank.” If for some reason this bank doesn’t make it, all depositors will get back the whole amount they put in. The Silicon Valley Bank settlement makes sure that no taxpayers will be hurt.