Joe Biden says taxpayer funds won't be used to bailout SVB after collapse

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WASHINGTON — President Joe Biden attempted to calm market and taxpayer jitters on Monday morning, saying in remarks that Americans can have “confidence” in the banking system after the collapse of Silicon Valley Bank.

“Americans can have confidence that the banking system is safe. Your deposits will be there when you need them,” Biden said from the White House.

Joe Biden said “no losses” would be born by taxpayers, and the money would come from the fees that banks pay into the Deposit Insurance Fund.

Federal regulators also assessed over the weekend that Signature Bank of New York presents a systemic risk and they were taking it over. Biden said that managers of the bank would be fired and investors would not be protected.

Dow futures fell more than 300 points on Monday morning as the markets prepared to open.

Silicon Valley Bank’s failure is the second largest since the 2008 financial crisis and came after struggling tech companies made a run on the bank, withdrawing cash at a rapid pace and forcing the bank into a position where it had to sell bonds at a loss to cover the withdrawals.

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Joe Biden says taxpayer funds won’t be used to bailout SVB after collapse

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