Bank collapses: Biden promises to hold those responsible for this mess

US President Joe Biden has promised to take action against those responsible for the banking crisis in the country. His statement comes just hours after regulators closed Signature Bank, a New York-based regional-size lender. Biden also said that he will speak about the US banking system and reassure Americans after the failures of Silicon Valley Bank and Signature Bank. The American people and American businesses can have confidence that their bank deposits will be there when they need them, said Biden.

At my direction, @SecYellen and my National Economic Council Director worked with banking regulators to address problems at Silicon Valley Bank and Signature Bank.

I’m pleased they reached a solution that protects workers, small businesses, taxpayers, and our financial system. https://t.co/CxcdvLVP6l

— President Biden (@POTUS) March 13, 2023

Signature Bank was closed by the state regulators on Sunday, becoming the second US bank after Silicon Valley Bank which collapsed on Friday. The crisis-hit Silicon Valley Bank’s shares tumbled over 60 per cent, data showed. As these banks collapsed, the Federal Deposit Insurance Corporation (FDIC) was appointed as a receiver, which typically means it will liquidate the bank’s assets to pay back its customers, including depositors, and others.