The President of the United States, Joe Biden, has defended this Monday the soundness of the country’s banking system, after the »swift» action of the financial authorities, and has pointed out the importance of strengthening banking regulation, after the relaxation measures implemented by the Trump Administration, so that episodes such as those of SVB and Signature Bank do not happen again.
»Americans can trust that the banking system is safe. Their deposits will be there when they need them,» Biden said from the White House, after the collapse of Silicon Valley Bank (SVB) and Signature Bank sent shivers down the spines of investors fearing a repeat of the financial crisis.
The US president also stressed that »there will be no losses borne by taxpayers», since the funds to rescue the institutions will come from a fund that is fed by contributions from the banking sector.
On the other hand, Biden wanted to show the utmost harshness with the managers of the entities, assuring that »they will be fired» and adding that the investors in the intervened entities »will not be protected», since they knowingly assumed risks and, when it was not worth it, they lost their money. »This is how capitalism works,» he said.
In this sense, the tenant of the White House has expressed his will that those responsible for the collapse of the entities assume what happened and the need to avoid a repetition of something like this.
»We must try not to repeat it», he defended, recalling that, during the Obama/Biden Administration, tougher requirements were implemented for banks such as SVB and Signature Bank that »unfortunately», the previous Administration of Donald Trump relaxed in some aspects.
Thus, Biden has pledged to ask Congress and banking regulators to strengthen regulation of the sector to make it less likely that it could happen again.
Source: (EUROPA PRESS)
