The latest on the Silicon Valley Bank collapse: Live updates

9:43 a.m. ET, March 13, 2023

Taxpayers will not suffer any losses, Biden says, as he describes measures to keep the banking system safe

From CNN’s Aditi Sangal

US President Joe Biden speaks about the US banking system today in the Roosevelt Room of the White House in Washington, DC.

(Saul Loeb/AFP/Getty Images)

President Joe Biden addressed the nation Monday to reassure Americans that the banking system is safe following the collapse of Silicon Valley Bank and Signature Bank. In his speech, he highlighted the immediate action taken by his administration.

Customers’ deposits will be protected: Customers will “get access to their money starting today. That includes small businesses across the country that bank there and need to make payroll, pay their bills and stay open for business,” Biden said, adding that there will be no little loss of the taxpayers.

“Instead, the money will come from the fees that the banks pay to the deposit insurance fund,” he explained.

The management of these banks will be fired: “If the bank is taken over by the FDIC, the people who run the bank should no longer work there,” Biden said.

Investors in the banks will not be protected: “They deliberately took a risk, and when the risk didn’t pay off, investors lose their money. That’s how capitalism works,” Biden added.

Logs a full account of what happened: Biden emphasized the importance of holding those responsible accountable. “In my administration, no one is above the law,” he said.

Reduces the risk of this happening again: Referring to the requirements put in place under the Obama administration, including the Dodd-Frank law, Biden said rules were in place to prevent a repeat of 2008. But he added that the Trump administration was rolling back some of these rules back.

“I would ask Congress and the banking regulators to strengthen the regulation of banks to make it less likely that this kind of bank failure would happen again,” he said. “And to protect American jobs and small businesses.”

Assuring that although the banking system is safe, he also said that the administration will not stop at this.

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