MSNBC’s Joe Scarborough said Tuesday morning that President Joe Biden failed to quell fears about bank runs while speaking to the nation Monday.
Biden addressed the closures of Silicon Valley Bank and Signature Bank on Monday, urging Americans to “have confidence” in the banking system because the administration would hold those responsible “accountable.” Biden also said banks’ customers will “have access to their money” and that taxpayers would not bail out the banks. (RELATED: How Silicon Valley Bank’s Wild Implosion Will Set Off A Financial Firestorm)
“Let’s talk right now, though, about the banking crisis. President Biden addressed the collapse of Silicon Valley Bank yesterday morning and he tried to reassure the country that the United States’ banking system is not failing and will not fail,” Scarborough said, before playing the clip from Biden in which he tried to reassure fears on Monday.
“The president also tweeted, quote, ‘I will ask Congress and banking regulators to strengthen the rules for banks to make it less likely that this kind of bank failure happens again.’ Let’s bring in CNBC’s Dom Chu. Dom, the President tried to reassure investors, bankers, Wall Street. It didn’t work, for the most part with the stocks for regional banks,” Scarborough said. “What is your read this morning going into another day, how high is the fear level?”
Chu acknowledged that while things are worrisome, but said it comes down to “whether or not Americans feel confident enough to keep their deposits at a bank, a regional one. Now, if everything goes as usual, things are going to be fine, but the bigger issue now is how long it takes for Americans to feel okay about being at local or regional banks rather than doing what many folks have already done.”
The Federal Deposit Insurance Corporation took control of the New York-based Signature Bank on Sunday after Silicon Valley Bank collapsed Friday. The collapse of Silicon Valley and is the largest bank meltdown since Washington Mutual in 2008.