Joe Biden wanted to be clear and concise with regard to the crisis that originated after the collapse of Silicon Valley Bank (SVB) and Signature Bank. On the one hand, the President of the United States has defended that the clients of both entities have their money safely, ensuring that the banking system “is safe.” “Your deposits will be there when you need them”, he has settled it.
However, with the investors of the entities it has been more forceful, making it clear that “they will not be protected“. “They knowingly took risks, and when the risk did not reward them, they lost their money. This is how capitalism works“, Biden explained. In addition, he has stated that taxpayers will not bear the losses generated by this crisis, since the funds for the rescue of the entities will come from a fund that is nourished by contributions from the banking sector.
In this sense, the tenant of the White House He has expressed his wish that those responsible for the collapse of the entities accept what happened and the need to prevent something like this from happening again.
“You have to try not to repeat it“He has defended, recalling that during the Obama/Biden Administration tougher requirements were implemented for banks such as SVB and Signature Bank than “unfortunately“, the previous Administration of Donald Trump relaxed in some aspects.
In this way, Biden has promised to ask Congress and bank regulators to reinforce the regulation of the sector to make it less likely that it could happen again.
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