(RepublicanDaily.org) – U.S. President Biden assured citizens on March 13 that they should rest assured following the collapse of the Silicon Valley Bank. The SVB collapse is the second-largest collapse of a bank in U.S. history, NBC reported. Biden assured Americans that the government would do “whatever is needed” on top of all the banking issues. Signature banking also collapsed on March 10, as a result of growing distress that was fueled by “crypto bets” and “running on deposits,” The New York Times reported.
Biden addressed the nation, stating that the administration is taking steps to give Americans confidence in the security of the U.S. banking system. Additionally, the bank’s collapse was the worst financial impact on the U.S. bank system since the 2008 collapse, NBC reported.
The collapse of the Silicon Valley Bank has been felt all around the world, hitting startups “as far away as China” CNBC reported. SVB was popular among tech startups, including those in China and those backed by U.S. venture capitalists. As the SVB collapsed, the United States government stepped in to secure the account holders’ deposits.
The Silicon Valley Bank collapse was with “astounding speed,” CNN reported. An armored truck from the Brinks security company reportedly sat outside the now defunct institution on March 10.
Signature bank was a 24-year-old institution that held deposits from law institutions and real estate companies. The Signature bank failure was the “third-biggest failure” of a bank in United States history, NBC reported.
As banks failed, Congress was on-edge, anticipating a looming battle over the U.S. national debt ceiling crisis, Politico reported. Treasury officials reportedly briefed Congress on March 12 over the efforts being taken to contain bank collapse fallout. Treasury Secretary Janet Yellen explained that any losses to the Deposit Insurance Fund to “support uninsured debtors” would be recovered by special assessments on banks, which is required by law.
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