WASHINGTON, D.C. — President Biden attempted to calm market and taxpayer jitters on Monday morning, saying that Americans can have "confidence" in the banking system after the collapse of Silicon Valley Bank.
"Americans can have confidence that the banking system is safe,'' Biden said at the White House. 'Your deposits will be there when you need them."
According to reports, Biden said "no losses" would be born by taxpayers, and the money would come from the fees that banks pay into the Deposit Insurance Fund. Those fees are paid by depositors.
Silicon Valley Bank's failure is the second largest since the 2008 financial crisis and came after struggling tech companies and made a run on the bank, withdrawing cash at a rapid pace and forcing the bank into a position where it had to sell bonds at a loss to cover the withdrawals.
Federal regulators also assessed over the weekend that Signature Bank of New York presents a systemic risk and said they were taking it over. Biden said Monday that managers of the banks would be fired, and investors would not be protected.
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