President Joe Biden on Sunday promised to punish those responsible for the collapse of Silicon Valley Bank as his administration seeks to make the financial institution’s customers whole.
The American public can be confident that their bank deposits will be there when they need them, according to Biden, who underscored in a statement that his administration’s actions will not put taxpayer dollars “at risk.”
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“Over the weekend, and at my direction, the Treasury Secretary and my National Economic Council Director worked diligently with the banking regulators to address problems at Silicon Valley Bank and Signature Bank,” the statement read. “I am pleased that they reached a prompt solution that protects American workers and small businesses, and keeps our financial system safe.”
“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,” he added.
Biden is expected to speak about Silicon Valley Bank and Signature Bank in more detail on Monday after spending the weekend in Wilmington, Delaware.
Earlier Sunday, the Biden administration guaranteed Silicon Valley Bank deposits, including uninsured amounts, so customers will have access to their money as soon as Monday after the tech-focused institution collapsed last week. The intervention, along with the decision to unwind similar Signature Bank, is aimed at avoiding additional bank runs and helping business clients remain operational.
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Regulators will not protect shareholders and unsecured creditors and there will be no bailouts, according to Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell, and Federal Deposit Insurance Corporation Chairman Martin Gruenberg on Sunday evening.
“We’re not going to do that again. But we are concerned about depositors and are focused on trying to meet their needs,” Yellen added on CBS’s Face the Nation Sunday morning.
