ADD ANI AS A TRUSTED SOURCE
googleads
Menu
US

President Biden says American banking system remains safe following collapse of two US banks

"Small businesses across the country that had accounts at Silicon Valley Bank and Signature Bank can breathe easier knowing they'll be able to pay their workers. It won't cost taxpayers a dime. This is paid for with the fees that banks pay into Deposit Insurance Fund," said Biden.

ANI Mar 14, 2023 05:16 IST googleads

US President Joe Biden.

Washington [US], March 14 (ANI): US President Joe Biden on Monday (local time) said the American banking system remains safe following the collapse of two US banks -- Silicon Valley Bank and Signature Bank.
"Small businesses across the country that had accounts at Silicon Valley Bank and Signature Bank can breathe easier knowing they'll be able to pay their workers. It won't cost taxpayers a dime. This is paid for with the fees that banks pay into Deposit Insurance Fund," said Biden.
However, the failures have nonetheless created concern among customers who hold their money in other similarly-sized banks.
US regulators closed the Silicon Valley Bank on Friday after it experienced a traditional bank run, where depositors rushed to withdraw their funds all at once. It is the second largest bank failure in U.S. history, behind only the 2008 failure of Washington Mutual.
In a sign of how fast the financial bleeding was occurring, regulators announced that New York-based Signature Bank had also failed.
Biden underscored that the American banking system remains "safe" as he laid out how his administration is taking action to contain the collapse.
He blamed the previous US administration for the banking failure. Biden said, "During the Obama-Biden administration, we put in place tough requirements on banks like Silicon Valley Bank and Signature Bank, including Dodd-Frank Law, to make sure that the crisis we saw in 2008 would not happen again. Unfortunately, the last administration rolled back some of these requirements. I am going to ask Congress and banking regulators to strengthen the rules for banks to make it less likely this kind of bank failure would happen again and to protect American jobs and small businesses."
Meanwhile, at First Republic Bank in Studio City Monday morning, there was a steady stream of customers taking their money out and moving it to bigger banks.
This came amid worries about what may be next to topple following the second-and third-largest bank failures in US history.
The pressure is majorly on the regional banks a couple of steps below in size of the massive, "too-big-to-fail" banks that helped take down the economy in 2007 and 2008.
Shares of First Republic plunged 62.6 per cent, even after the bank said Sunday it had strengthened its finances with cash from the Federal Reserve and JPMorgan Chase, reported ABC 7.
Amid the turmoil, the First Republic in a response to Eyewitness News, tried to reassure its nervous customers.
"We're continuing to fully serve the needs of our clients by opening accounts, making loans, executing transactions and delivering exceptional service at our offices and online," First Republic said in a statement.
Huge banks, which have been repeatedly stress-tested by regulators following the 2008 financial crisis, weren't down as much. JPMorgan Chase fell 1.2 per cent, and Bank of America dropped 3.9 per cent.
First Republic Bank is small compared to the nation's largest banks. (ANI)

Get the App

What to Read Next

US

Trump describes Michigan synagogue attack as "terrible"

Trump describes Michigan synagogue attack as

Speaking at a Women's History Month event at the White House, the US president said he had been fully briefed on the situation and described the incident as "terrible."

Read More
Asia

India consistently supported Maldives in crisis: Mohamed Nasheed

India consistently supported Maldives in crisis: Mohamed Nasheed

He highlighted India's role as a "first responder" for the Maldives, emphasising that India's support during critical periods has been fundamental to the stability and security of the island nation.

Read More
Asia

"Bangladeshi workers are in devastating situation in Gulf," WARBE

Haque, in a conversation with ANI, said that about four Bangladeshis have died, and 12-13 are injured.

Read More
US

Ending Iran's nuclear ambitions over oil profits: Trump clarifies

Ending Iran's nuclear ambitions over oil profits: Trump clarifies

In a post by the White House, President Trump, while acknowledging that the United States is currently the world's leading oil producer and stands to benefit financially from higher crude prices, emphasised that his administration's overriding mission remains the permanent dismantling of Iran's nuclear program.

Read More
Middle East

"Blocking Strait of Hormuz must continue," says Ayatollah Mojtaba

In his first address to the Iranian people. Ayatollah Mojtaba Khamenei called for the continued blockade of the Strait of Hormuz, a move that will raise tensions.

Read More
Home About Us Our Products Advertise Contact Us Terms & Condition Privacy Policy

Copyright © aninews.in | All Rights Reserved.