President Joe Biden has expressed his satisfaction with the response of the Treasury Department and other agencies following the collapse of the Silicon Valley Bank (SVB), the second-biggest bank failure in US history. In a statement released on Sunday evening, Biden said that he would provide further information about the collapse of the SVB and the shutdown of the New York-based Signature Bank, which would include addressing the concerns of workers and depositors, on Monday morning.
Biden noted on Twitter that his National Economic Council Director and Treasury Secretary, Janet Yellen, had worked with banking regulators to address the issues surrounding the Silicon Valley Bank and Signature Bank. He expressed pleasure that they had reached a solution that would protect workers, small businesses, taxpayers, and the financial system as a whole. Additionally, the President pledged accountability for those responsible, although he did not provide details about any specific actions that his administration would take.
The President stated that he is committed to holding those responsible for the bank’s collapse accountable and strengthening oversight and regulation of larger banks to prevent similar incidents in the future. He also said that he would provide more details on the matter the following day.
In a separate tweet, Biden reassured Americans that their bank deposits would remain accessible when they needed them, urging them to remain confident.
The President’s comments were in line with a joint statement released earlier in the day by the Treasury Department, Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC).
“Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system,” the joint statement read. “This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.”
The collapse of the SVB, which is the 16th-largest bank in the US, occurred on Friday when depositors began withdrawing cash out of concern for the bank’s health. The collapse of the Washington Mutual Bank in 2008 was the largest bank failure in the country’s history.