Biden reassures Americans of their deposits and promises to hold Silicon Bank employees accountable

Biden reassures Americans of their deposits :

and promises to hold accountable those responsible

for the bankruptcy of Silicon Valley and Signature.

US President Joe Biden has pledged to hold accountable those responsible for the bankruptcy of Silicon Valley and a second financial institution, Signature Bank

while seeking to reassure Americans that their deposits are safe.

I am deeply committed to holding accountable those responsible for this chaos and continuing our efforts to strengthen oversight and regulation of big banks so that we never find ourselves in this position again

Biden said in a statement

adding :

• The American people

• and American companies can trust that

• When needed, their bank deposits will be available.

Biden said he planned to talk about the U.S. banking system on Monday morning to reassure Americans after Silicon Valley and Signature bankruptcy.

This comes as U.S.

Treasury Secretary Janet Yellen confirmed on Sunday that the government wants to avoid the impact of Silicon Valley Bank's "SVP" bankruptcy on the rest of the banking system.

"We want to make sure that one bank's problems do not cause infections to other powerful banks," Yellen said in a press talk.

Washington ruled out bailing out the Foundation

by injecting public funds into it

but in return asserted that it would protect all its deposits.

The US financial authorities announced a bailout on Sunday that will ensure that all Silicon Valley Bank depositors can get their money back in full.

After Silicon Valley Bank...

New York state authorities close new US bank

New York State lawmakers on Sunday closed Signature Bank just two days after California authorities closed Silicon Valley Bank, a collapse that disrupted global markets.

The Department of Financial Services for New York State stated that

had acquired Signature Bank and attached the recipient status to the Federal Deposit Insurance Corporation, in the second bankruptcy of a bank within days.

The Department added in a statement that deposits with Signature Bank amounted to about $88.59 billion in total as of December 31.

As of December 31, 2022

the Bank had approximately $110.36 billion in assets

according to the Department of Financial Services for New York State.

Officials said on Sunday that

shareholders and some unsecured debt holders of Signature Bank

as well as Silicon Valley Bank

would not be protected and that the senior management of both banks had been removed.

The U.S.

According to the Treasury Department and other banking authorities,

a joint statement on Sunday that depositors

at Signature Bank would be compensated and that taxpayers would not incur any losses.

The ministry said it was taking decisive action to protect the U.S. economy by strengthening public confidence in the banking system.

These actions will ensure that

the United States banking system continues to play its vital role in

protecting deposits and providing access to credit for families and companies in a way that promotes strong and sustainable economic growth.

The Ministry stated that after receiving a recommendation

from the boards of the Federal Insurance Corporation (FDIC)

Along with the Federal Reserve, after consulting the President

Secretary Yellen approved procedures that

enable the Foundation to complete its decision on Silicon Valley Bank

Santa Clara, California :

• in a manner that completely safeguards all depositors

• as depositors will have access to all their funds from Monday

• March 13, and taxpayers will not bear any losses associated

with the Silicon Valley Bank's decision.

We are also announcing a similar systematic risk exception for Signature Bank in New York, which was closed today by the state authority.

The Federal Reserve announced on Sunday that it would provide additional funding to eligible depository institutions to help ensure banks can meet the needs of all depositors.

The bank had a long

standing relationship with former President Donald Trump and his family, providing Trump and his company with current accounts and funding several family projects.

"Signature Bank" severed ties with Trump in 2021 after the Capitol Hill riots on January 6.