The president, Joe Biden, appeared at nine in the morning on Monday, before the opening of the financial markets, to send a brief message of confidence in the financial system of the country after the bankruptcy on Friday in California of Silicon Valley Bank, the 16th largest bank by deposit volume in the United States, and Signature Bank on Sunday in New York.
"Thanks to the quick action of my Administration in recent days, Americans can trust that the banking system is safe," Biden said, and the money deposited "will be there when needed" by those who entrusted it to a financial institution.
A group of customers in front of the Silicon Valley Bank headquarters in Santa Clara, California, on March 10, 2023. Justin Sullivan / Getty Images
Biden confirmed that the leadership of the failed banks will be fired and that his government will take the necessary measures to "reduce the possibility of this happening again."
“Your deposits are safe.
Let me also assure you that we will not stop at this: we will do whatever it takes, ”he said.
"All customers with deposits can rest assured that their deposits will be protected," said the president, referring to the two institutions seized by federal authorities in recent hours.
The deposit guarantee system only protects the first $250,000;
The rest of the money, in the event of a crisis, depends on the liquidity of the affected bank.
But the Treasury Department, the Federal Reserve (known as the Fed) and the Federal Deposit Insurance Corp. all stepped in Sunday night to protect Silicon Valley Bank's deposits, resolving a key uncertainty surrounding the second-biggest bank failure in US history, hours before the stock markets resumed trading.
In this way, the Government will support client accounts beyond the limit of 250,000 dollars, a decision that puts an end to the concern surrounding the uninsured funds of the bank, the sixteenth in the country, with 209,000 million dollars in assets and more than 175,000 million in deposits.
"Depositors will have access to all their money starting Monday, March 13," the agencies promised in a joint statement.
"No loss associated with the resolution of Silicon Valley Bank will be borne by the taxpayer," they stressed.