Live updates: Silicon Valley Bank collapses

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By Amit

US President Joe Biden speaks about the US banking system today in the Roosevelt Room of the White House in Washington, DC.  (Saul Loeb/AFP/Getty Images)

President Joe Biden addressed the nation Monday to assure Americans that the banking system is safe after the collapse of Silicon Valley Bank and Signature Bank. In his speech, he highlighted the immediate action that his administration has taken.

Customers’ deposits will be protected: Customers will “have access to their money as of today. That includes small businesses across the country that bank there and need to make payroll, pay their bills and stay open for business,” Biden said, adding that no losses will be suffered by the taxpayers.

“Instead, the money will come from the fees that banks pay into the deposit insurance fund,” he explained.

The management of these banks will be fired: “If the bank is taken over by FDIC, the people running the bank should not work there anymore,” Biden said.

Investors in the banks will not be protected: “They knowingly took a risk and when the risk didn’t pay off, investors lose their money. That’s how capitalism works,” Biden added.

Logging a full account of what happened: Biden stressed the importance of holding those responsible accountable. “In my administration, no one is above the law,” he said.

Reducing the risk of this happening again: Citing the requirements put in place during the Obama administration, including the Dodd-Frank Act, Biden said there were rules in place to prevent a repeat of 2008. But he added that the Trump administration rolled some of these regulations back.

“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,” he said. “And to protect American jobs and small businesses.”

Reassuring that while the banking system is safe, he also said the administration will not stop at this.

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