Recently, several US banks have collapsed as economic difficulties continue to ravage the financial industry. Only a day after the fall of Silvergate Bank, the Silicon Valley Bank (SVB) also collapsed, and following it, Signature Bank did, as well.<\/p>\n
As the situation started becoming more and more concerning for investors and business partners of these financial institutions, US President Joe Biden himself decided to address the situation. In his recent tweet, Biden vowed to hold accountable those responsible for the failure of the banks. At the same time, he has taken the opportunity to assure Americans that their deposits are safe.<\/p>\n
The collapse of Signature Bank is the most recent of the three, taking place over the weekend. The New York District of Financial Services reacted on March 12th, taking possession of the bank. The US Fed commented on the move, stating that the crypto-friendly bank was shut down to protect the US economy. Apart from that, the goal was also to strengthen the public confidence in the banking system, which has recently started failing.<\/p>\n
In addition, the Fed also announced a $25 million fund meant to be used for backstopping some of the banks that might be facing a liquidity crisis these days, and in the future.<\/p>\n
The US president decided to address the matter himself, using his Twitter account to announce that he is pleased that the agencies have managed to reach a solution that would protect small businesses, workers, and other taxpayers who contribute to the financial system of the country.<\/p>\n
\nAt my direction, @SecYellen<\/a> and my National Economic Council Director worked with banking regulators to address problems at Silicon Valley Bank and Signature Bank.<\/p>\n
I’m pleased they reached a solution that protects workers, small businesses, taxpayers, and our financial system. https:\/\/t.co\/CxcdvLVP6l<\/a><\/p>\n
— President Biden (@POTUS) March 13, 2023<\/a><\/p><\/blockquote>\n