Biden on Monday assured that the American banking system remains “safe,” laying out how his administration is taking action to contain Silicon Valley Bank’s collapse.
“Americans can rest assured that our banking system is safe. Your deposits are safe,” Biden said in remarks Monday morning from the Roosevelt Room. “Let me also assure you we will not stop at this. We will do whatever is needed on top of all this.”
In a press conference, Biden directly explained to the public what was exactly instructed to his administration in order to protect small businesses and workers, including backstopping depositors’ funds, taxpayers not being on the hook for these moves, holding those responsible accountable and not extending relief to investors of Silicon Valley Bank.
While the government is ensuring that SVB depositors get their money back, “no losses will be borne by the taxpayers,” he said. “The money will come from the fees that banks pay into the deposit insurance.”
SVB provided financing for almost half of US venture-backed technology and healthcare companies. At the end of 2022, the bank said it had $151.5 billion in uninsured deposits, $137.6 billion of which was held by US depositors.
Biden, who was at his Delaware home for the weekend, was briefed regularly by National Economic Council Director Lael Brainard. As regulators moved toward the solution they would launch, Treasury Secretary Janet Yellen presented the full plan in consultation with Biden, officials said. The president signed off on the plans.