On Monday, President Joe Biden affirmed the Americans with the assurance that their banking system is secure post the Silicon Valley Bank mishap and mentioned that he is seeking to introduce tougher regulations to curb such crises in future.
“Americans can have confidence that the banking system is safe. Your deposits will be there when you need them,” Biden said in a statement televised from the White House after Silicon Valley Bank’s failure and the federal takeover its successor.
While the government is ensuring that SVB depositors get their money back, “no losses will be borne by the taxpayers,” Biden added.
“The money will come from the fees that banks pay into the deposit insurance.”
“I’m going to ask Congress and the banking regulators to strengthen the rules for banks to make it less likely this kind of bank failure would happen again,” Biden said.
“We must get the full accounting of what happened and why, (so) those responsible can be held accountable,” he added.
Not only will taxpayers not be liable for covering the deposits, but “the management of these banks will be fired,” he stated.
He further mentioned that once a bank is captured officially by the government, “the people running the bank should not work there anymore.”
Biden stressed that investors who bought into SVB were not getting bailed out.
“They knowingly took a risk and when the risks didn’t pay off, investors lose their money. That’s how capitalism works,” he added stating that investors which had patched him into SVB will not be released on the front.
