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‘Our banking system is secure’: Joe Biden seeks calm after bank collapse



US President Joe Biden has asked the American people to calm down and assured them that the country’s banking system is “secure.” He then emphasized that undersigned banks and Silicon Valley Bank (SVB) customers have deposits that are bankrupt banks.

“Your deposit is there when you need it” said the president in front of the press on this day.

Biden, meanwhile, has pledged to ask Congress to strengthen legislation in the sector, arguing that taxpayers will not be held responsible for losses caused by the sector. bankruptcy of the bank.

“If the Federal Deposit Insurance Corporation takes over a bank, the people who run the bank shouldn’t be working there,” he said.

“Investors are not protected. They take risks deliberately and if the risks fail, the investor loses money. This is how capitalism works,” he added.

According to Agencia EFE, the statement came a day after the regulator launched a plan to protect SVB deposits after bankruptcy and closed another banking institution, Signature Bank, under the same parameters.

bankruptcy in 40 years

On Sunday, the Secretary of the Treasury Janet Yellen acknowledged concerns about SVB depositors and ruled out the possibility of the government resorting to bail-out of the bank.

created 40 years ago this bank differed from others by being willing to take greater risks when it comes to financing projects.

In fact, thousands of startups have successfully developed thanks to funding from SVB.Currently has famous companies as clients and stands out among them Spotify and Beyond Meat.

It should be noted that SVB’s bankruptcy on Friday left the world’s major stock markets operating in the red, creating an edge of uncertainty in the market.

Source: Biobiochile

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