Financial fear in the United States due to the bankruptcy of two banks: Biden says that small businesses can be calm
Amid financial fears over the bankruptcy of Silicon Valley Bank and Signature Bank, President Joe Biden assured that small businesses “will be able to pay their employees”, in addition to ensuring the layoffs of those who caused the bank failures
The bankruptcies of Silicon Valley Bank and Signature Bank have caused financial fear in the United States, but President Joe Biden says he will take action and, he says, the banking system is safe.
In an early morning message, but following his first official reaction on Sunday night, the president said that small businesses can “breathe easy” and, he insisted, “will be able to pay their workers.”
“Americans can trust that the banking system is secure,” defended President Biden. “Your deposits will be there when you need them. Small businesses across the country that have deposit accounts at these banks can breathe easier knowing that they will be able to pay their workers and pay their bills.”
On Sunday night, the White House sent out a statement announcing President Biden's message, but trying to assuage concerns.
“The president will tell Americans that they can trust that our banking system is secure and that their deposits will be there when they need them,” a White House official said.
The actions of the Biden Administration are emphasized in supporting the funds of the depositors of both banks, so that taxpayers are not affected, in addition to holding accountable those who caused the bankruptcies.
Biden said that during the Barack Obama government – when the 2008 crisis occurred – the Dodd-Frank Act was implemented, to try to repeat those financial mistakes, but accused former President Donald Trump of canceling some regulations.
“I am going to ask Congress and banking regulators to strengthen the rules for banks, so that this type of bank failure is less likely to happen again,” said the president.
One element that the president highlighted is that the investors in these banks will not be protected by the government.
There are several sectors and companies concerned about the closure of banks, for example, Silicon Valley Bank includes Vox Media; while Signature Bank, which is located in New York, is known for cryptocurrency transactions and real estate investment management.