President Biden says he’s working to calm fears about growing chaos in the banking industry.
“Americans can rest assured that our banking system is safe. Your deposits are safe. Let me also assure you, we will not stop at this. We’ll do whatever is needed,” Biden said.
It started Friday with the sudden collapse of Silicon Valley Bank, making it the biggest failure since the 2008 financial crisis. The Treasury Department is moving to ensure all SVB deposits are paid in full, with depositors able to access their funds today.
The bombshell news was followed up on Sunday by federal regulators announcing the closure of the New York-based Signature Bank due to what’s deemed as “systemic risk.”
Treasury Secretary Janet Yellen told CBS Sunday that there will be no federal bailout for the failed California bank.
“The reforms that have been put in place means that we’re not going to do that again.”