For three days in the US, two large banks burst at once. Last week, the regulator closed Silicon Valley Bank, and Signature Bank was closed today. After their collapse, US President Joe Biden spoke.
What is known
The head of the White House immediately noted that nothing threatens the American banking system. Taxpayers will not suffer losses due to the situation with Silicon Valley Bank and Signature Bank. At the same time, Joe Biden stressed that investors who have invested in these banks will not be able to get the money back.
“They deliberately took a risk, and when the risk didn’t pay off, the investors lost their money. This is how capitalism works.” – Joe Biden.
The timely actions of the presidential administration made it possible to keep the banking system safe. Biden noted that American contributions “will be there when they are needed.” The president also promised to fire the heads of Silicon Valley Bank and Signature Bank.
Pres. Biden says those who invested in failed Silicon Valley Bank and Signature Bank 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.” https://t.co/HWi82gAbJP pic.twitter.com/3hVKFJqmZt
— ABC News (@ABC) March 13, 2023
In addition, the head of the White House plans to take measures to reduce the risks of a recurrence of a similar situation in the future. Joe Biden will ask the US Congress to strengthen the requirements for banks and recalled that part of the criteria for credit institutions was canceled under the presidency of Donald Trump (Donald Trump).
Source: ABC
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