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Business News/ News / World/  Biden urges confidence in banks after collapse, bats for strengthening of rules
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Biden urges confidence in banks after collapse, bats for strengthening of rules

US President Joe Biden sought to reassure Americans on Monday following the collapse of two major banks, stating that people can 'have confidence' in US banking.

President Joe Biden speaks about the banking system in the Roosevelt Room of the White House, Monday, March 13, 2023 in Washington. (AP Photo/Andrew Harnik) (AP)Premium
President Joe Biden speaks about the banking system in the Roosevelt Room of the White House, Monday, March 13, 2023 in Washington. (AP Photo/Andrew Harnik) (AP)

Following the collapse of two major banks within days of each other, President Joe Biden insisted on Monday that Americans could still 'have confidence' that US banking was safe. The POTUS also said that he was ‘going to ask Congress and regulators to strengthen bank rules’. He reminded that the FDIC had already taken control of SVB and Signature Bank assets.

"American can have confidence that the banking system is safe. Your deposits will be there when you need them," he said amid growing fears of a global ripple effect.

It is however pertinent to note here that President Biden faces a divided Congress that is unlikely to approve tougher new rules.

ALSO READ: US Banks Crash Live Updates

Hitting out sharply at the officials involved in bank operations, Biden suggested that the people running the banks “should not be there any more". 

“Investors in the banks will not be protected…no one is above the law. They knowingly took a risk, and when the risk didn't pay off his adjusters lose their money. That's how capitalism works," he added. 

The President also assured that no losses would be borne by US taxpayers.

“Money will come from insurance fund fees," he reportedly said.

 

(With inputs from agencies)

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Published: 13 Mar 2023, 06:57 PM IST
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