The United States takes action after the bankruptcies of SVB and Signature Bank

The US president, Joe Biden, affirmed that they will continue their efforts to strengthen the supervision and regulation of the largest banks to avoid situations such as the bankruptcy of Silicon Valley Bank (SVB) and Signature Bank.

Biden spoke on actions aimed at increasing confidence in the banking system.

Saying his instructions worked diligently to resolve issues at Silicon Valley Bank (SVB) and Signature Bank over the weekend, Biden welcomed the speedy resolution of a solution that protects American workers and small businesses and keeps America safe. the financial system.

Emphasizing that the solution also ensures taxpayer money is not put at risk, Biden noted that American individuals and businesses can access bank deposits whenever they need to.

Pointing out what must be done to avoid similar problems again, Biden said: “I am determined to hold those responsible for this mess fully accountable and to continue our efforts to strengthen supervision and regulation of the largest banks so that we do not fall into this situation. again. “Tomorrow morning I will make a statement on how we will maintain a resilient banking system to preserve our historic economic recovery.”

DECISIONS ON DEPOSIT PROTECTION ANNOUNCED

The US Department of the Treasury, the US Federal Reserve (Fed) and the US Federal Deposit Insurance Corporation (FDIC) announced decisions on post-bankruptcy deposit protection of SVB and announced that SVB clients will be able to access their deposits from Monday.

It was stated that all depositors of New York-based Signature Bank would be integrated and it was announced that taxpayers would not bear any loss in respect of this bank, as in the SVB decision.

The Fed also announced that it would provide additional funding to eligible depository institutions to help banks meet the needs of all depositors. (AA)