President Joe Biden reassured Americans on Monday, March 13, 2023, that their banking system is safe in the wake of the sudden collapse of a Silicon Valley bank and the placement of another bank under federal public administration.
“Americans can be confident that the banking system is safe. Your deposits will be there when you need them,” Biden said in televised remarks from the White House.
Biden also said that taxpayers will not be held responsible for compensating the losses of Silicon Valley bank depositors, stressing that the crisis is under control.
He pointed out that the government guarantees that depositors will get their money back, but “taxpayers will not bear any losses,” explaining, “The money will come from the fees paid by banks to insure deposits.”
Paide announced that he would seek tougher rules in the wake of the collapse of the Silicon Valley bank, announcing that the bank’s directors would be fired. “I will ask Congress and banking regulators to strengthen the rules governing banks to reduce the possibility of this type of failure recurring,” he said.