Biden assures that the US banking system is safe
El presidente de EE.UU. se pronunció frente a la delicada situación desatada con el Silicon Valley Bank
US President Joe Biden sent a reassuring message to the country’s population about the safety of the US banking system. In a brief speech to the media, the president stressed that customer deposits at Silicon Valley Bank and Signature Bank are insured and will be available when needed.
This comes after regulators announced a plan to protect the SVB’s deposits after its collapse and the closure of another bank, Signature Bank, under the same parameters.
Biden indicated that he will seek to advance stronger regulation to avoid future bank failures, and affirmed that the money to protect deposits will come from the fees that banks pay for deposit insurance. In addition, the president announced that shareholders will not be protected in the event that the Federal Deposit Insurance Corporation (FDIC) takes over the bank.
In this sense, Biden declared that investors take a risk knowing that they can lose their money, which is a characteristic of capitalism.
California-based Silicon Valley Bank had previously announced it would seek a capital increase to deal with financial difficulties that led it to divest about $21 billion worth of investments, resulting in a loss of about $1.8 billion. millions.
However, many clients withdrew their funds following this announcement, leading to the bank’s lack of liquidity and its subsequent closure by regulators. This caused a drop in the company’s stock price and affected the banking sector not only in the United States, but also in other countries.
K. Tovar
Source: Descifrado
(Reference image source: file)
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