President Biden cited the “great economic gains” made by his government over the previous two years while blaming the Trump administration for the weekend failures of Silicon Valley Bank and Signature Bank.
“In order to prevent a repeat of the 2008 financial crisis, strict requirements for banks were implemented during the Obama-Biden administration. Unfortunately, some of these criteria were pulled back by the previous administration,” speaking from the Roosevelt Room in the White House, Biden noted.
Biden continued by assuring the public that their deposits are secure and that the financial burden will not fall on the taxpayer. The Wall Street Journal editorial board, as TheBlaze previously pointed out, claimed that the Fed’s loans to large banks and the guarantees for uninsured deposits held by tech magnates amount to “a de facto bailout of the banking system, even though regulators and Biden officials have all been telling everyone that the economy is flourishing and that there’s nothing to worry about.”
“The financial system is secure. Your deposits will be accessible whenever you need them,” Biden stated, before evading reporters’ queries and traveling to California.
Additionally, Biden added, “Customers who had funds in these banks may feel more secure knowing they’ll be safeguarded and that they’ll have access to their money today.”
“Taxpayers won’t incur any losses,” according to Biden. “The funds will instead be obtained from the fees that the banks contribute to the insurance deposit fund.”
“The managers of the impacted banks will be terminated,” according to Biden.
“The people in charge of the bank “should not work there any longer if the FDIC takes it over,” he said.
Biden added, “That’s how capitalism works,” explaining why the investors in the banks, who consciously accepted a risk that did not pay off, will not receive protection.
A “complete accounting of what happened and why,” stressed Biden, adding that those responsible must be held accountable. Additionally, Biden stated that he would encourage Congress to enact stricter banking laws in order to reduce the likelihood of further bank failures.
On Friday, regulators closed Silicon Valley Bank due to liquidity issues. Regulators also shut down the cryptocurrency-focused Signature Bank on Sunday.
Financial institutions Silicon Valley Bank and Signature Bank, according to Treasury Secretary Janet Yellen, won’t get bailouts like they did in 2008.
However, in a joint report from Yellen, Federal Reserve Board Chair Jerome H. Powell, as well as FDIC Chairman Martin Gruenberg that same day, officials said that depositors will have access to “all their funds” starting Monday.
Biden’s roughly five-minute speech came to a close with some analysis of the state of the economy. He specifically asserted that his track record for creating jobs, unemployment rates, take-home income, and requests for new business start-ups all point to “solid economic progress.”