President Joe Biden addressed the closures of Silicon Valley Bank and Signature Bank on Monday, telling Americans to “have confidence” in the banking system because the administration is taking steps to hold those responsible “accountable.”
The president promised that the banks’ customers will “have access to their money” on Monday and that taxpayers will not be forced to bail out the banks.
The Federal Deposit Insurance Corporation (FDIC) took control of the New York-based Signature Bank on Sunday after the Friday collapse of Silicon Valley Bank (SVB). The collapse of SVB is the largest bank meltdown since Washington Mutual in 2008, and will likely have reverberations across the tech sector. (RELATED: Regulators Shut Down Silicon Valley Bank After Stock Collapses)
SANTA CLARA, CALIFORNIA – MARCH 10: A worker (C) tells people that the Silicon Valley Bank (SVB) headquarters is closed on March 10, 2023 in Santa Clara, California. Silicon Valley Bank was shut down on Friday morning by California regulators and was put in control of the U.S. Federal Deposit Insurance Corporation. (Photo by Justin Sullivan/Getty Images)
Biden first addressed the collapse on Sunday, issuing a statement vowing to hold those responsible “for this mess fully accountable.” He has yet to identify anyone, but said Monday that the “management of these banks will be fired” as his administration conducts an investigation.
“We must get the full accounting of what happened and why those responsible can be held accountable. No one is above the law,” Biden said.
Taxpayers will not have to bail out the banks. “The money will come from the fees banks pay into the deposit insurance fund” and “investors in the banks will not be protected,” he added.
The investors “knowingly took a risk, and when the risk didn’t pay off, the investors lost their money. That’s how capitalism works,” Biden concluded.