The President of the United States, Joe Biden, has promised to ensure that those responsible for the downfall of Silicon Valley Bank and Signature Bank are held accountable. He also stated that depositors need not worry about their funds’ safety, as their deposits are secure.
Biden stated:
“I am firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again.”
According to Biden, the American public and businesses can rely on their bank deposits being available when required, so they should maintain their confidence in the banking system.
During a briefing with congressional members on Sunday, the officials of the Biden administration informed them of the steps they are taking to strengthen the financial system. President Biden is expected to give an official statement on the issue Monday morning.
Meanwhile, Senator Sherrod Brown and Representative Maxine Waters expressed their satisfaction that SVB depositors, both insured and uninsured, would be protected.
Silicon Valley Bank depositors, both insured & uninsured, will be made whole by the plan from the FDIC, the Federal Reserve, the Treasury & the White House. And the Fed has created a new facility to support all banks that need liquidity to ensure our banking system is safe.
— Maxine Waters (@RepMaxineWaters) March 13, 2023
The U.S. Senate Banking and Housing Committee announced on March 12, 2023, that some measures had been put in place to ensure small businesses would be able to pay wages and survive while depository institutions would have more options to withstand the storm by increasing liquidity.
According to the statement, the Lawmakers urged financial regulators to work on better understanding all the factors that led to the recent events and how to strengthen safeguards for the biggest banks.
The SEC’s chairman, Gary Gensler, released a statement saying that the SEC would be vigilant in monitoring and identifying any misconduct that might threaten investors, capital formation, or the markets. In his words: “In times of increased volatility and uncertainty, we at the SEC are particularly focused on monitoring for market stability and identifying and prosecuting any form of misconduct that might threaten investors, capital formation, or the markets more broadly.”
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