President Joe Biden declared the US banking system “safe” and vowed stiffer bank regulation, after U.S. regulators were forced to step in with a series of emergency measures after Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O) collapse, threatening to trigger a broader crisis.
“Americans can have confidence that the banking system is safe. Your deposits will be there when you need them,” Biden said.
The managers of the banks will be fired, Biden noted, and investors will lose money. “They knowingly took a risk, and when the risk didn’t pay off his adjusters lose their money. That’s how capitalism works,” he said.