Biden says no taxpayer money will be used to cover losses
President Joe Biden said Monday morning that Americans can have confidence that the U.S. banking system is safe, and that their deposits “would be there when they need them” in the wake of the collapse of Silicon Valley Bank.
Biden said small businesses “can breathe easier knowing they can pay their workers and pay bills.”
Last week, he said, his administration learned of problems at Silicon Valley Bank and the impact those problems could have, and instructed his administration “to quickly protect” U.S. banking interests.
Biden said that no losses from the extraordinary backstop measure would be borne by taxpayers.
Instead, Biden said, money will come from fees banks pay into the Federal Deposit Insurance Corporation’s insurance fund.
Biden declined to take questions about whether there was continued risks.
Panic and partying at SXSW over SVB
Less than 24 hours before its collapse, Silicon Valley Bank, known throughout the tech industry as SVB, hosted a private dinner for a couple dozen people at Perry’s Steakhouse & Grille in downtown Austin, a short walk from the convention center that hosts South by Southwest. Jake Chapman, a partner at the defense investment firm Marque Ventures, said he ordered the house specialty pork chop.
“I was expecting that the SVB folks would address the elephant in the room,” Chapman said. “But nobody said a thing about it.”
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