Biden Set to Deliver Remarks on Banking System Failure

By Staff, Agencies

US President Joe Biden will speak about the current banking situation on Monday, following the Silicon Valley Bank [SVB] failure, according to a statement released by the White House.

"Tomorrow morning, I will deliver remarks on how we will maintain a resilient banking system to protect our historic economic recovery," Biden said in a Sunday release, adding that he was "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 specified that at his direction, US Treasury Secretary Janet Yellen worked with banking regulators over the weekend to address problems with SVB and the New York-based Signature Bank.

The California Department of Financial Protection and Innovation announced on Friday that it was taking possession of SVB, citing inadequate liquidity and insolvency. The SVB became the largest bank to fail in the US after the 2007–2008 financial crisis.

According to the White House press pool, Biden told reporters on Sunday that he was going to answer questions about the banking crisis "tomorrow morning."

To protect insured depositors, the Federal Deposit Insurance Corporation [FDIC] has created the Deposit Insurance National Bank of Santa Clara [DINB], to which all insured deposits of SVB were transferred.