After 2nd US bank collapses, Biden to brief today on maintaining banking system

US President Joe Biden promised action against “those responsible for the mess” after a banking crisis hit the US, with regulations shutting down Signature Bank, a New York-based lender, and Silicon Valley Bank, a California-based lender, within three days.

Biden stated that he will deliver remarks on how his government will maintain a resilient banking system on Monday morning (local time). Signature Bank was closed down by state regulators on Sunday, becoming the second US bank to fail after Silicon Valley Bank on Friday. Data show that the shares of the crisis-hit Silicon Valley Bank have fallen by more than 60%.

“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 statement released by the White House on Sunday (local time).

The US president stated that the US Treasury Secretary and National Economic Council Director worked tirelessly with banking regulators over the weekend to address issues at Silicon Valley Bank 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.

Biden assured the American people and businesses that their bank deposits would be there when they needed them.

“I am firmly 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 statement added.

As these banks failed, the Federal Deposit Insurance Corporation (FDIC) was appointed as receiver, which typically means that the bank’s assets will be liquidated to repay its customers, including depositors, and others.