The president of the United States, Joe Biden, appeared before the nation this Monday and began his speech with this phrase: “Americans can be confident that the banking system is safe.”
Biden was forced to include this appearance in his agenda, before embarking on a trip to California, for fear that the federal takeover of Silicon Valley Bank, on Friday, and Signature Bank, on Sunday, will be the origin of a domino effect and the occurrence of a financial crisis reminiscent of the one between 2007 and 2009. In any case, he maintained that the problems started with his predecessor, Donald Trump, who chose to eliminate the protections imposed by the Obama administration. Biden.
The president tried to calm things down, once the stock markets began to show their nervousness, as well as the account holders in those institutions, and others. “The deposits will be there when small businesses across the country need them, and the banks will have the ability to deliver the money, pay the employees and settle the bills,” he stressed.
He recalled that his administration learned of the problem last week and that it immediately took measures to protect the interests of citizens and those small businesses. She noted that Treasury Secretary Janet Yellen took immediate action.
“In the first place, customers who have deposits in these banks (the two intervened), have the guarantee that their accounts will be protected and that today they will have access to their money,” he said. “And we repeat an important point, no loss will be borne by the taxpayers”, a phrase that he pronounced twice consecutively. “The money will come from the commissions that the banks pay to the FDIC (Federal Deposit Insurance Corporation),” he clarified. He insisted in his message to clients that “your deposits will be there.”
Marking differences with the crises of 2007-09, when bank leaders continued to get rich while the rest lost homes, money and jobs, Biden remarked that “the managers of these banks will be fired.” He qualified that if the FDIC takes the reins and puts the banks back to work, “those who ran it should not go back to their jobs.”
The third message was sent to investors in those institutions. “They are not protected. Investors knew they were taking a risk, and when it doesn’t work out, you lose your money. It’s how capitalism works,” he stressed.
He also addressed the question of how these banks have gotten into this situation. “We have to make the responsibilities clear and that the perpetrators face their responsibility, no one is above the law,” he said.
In conclusion, he pointed out that regulations will be imposed so that “this does not happen again.” It was at this point that he blamed Trump for lifting all kinds of restrictions. “We will impose them again,” he promised.
