Biden Looks to Reassure Nervous Customers That U.S. Banks Are Safe – By Susan Milligan (US News) / Mar 13, 2023
Depositors at two failed banks included wealthy customers and big-money institutions. But the president’s remarks drew a distinction between customers and those who took risks with other people’s money.
President Joe Biden sought to reassure nervous banking consumers Monday with remarks that did double duty as a 2024 campaign message: Everyone who had deposits in two recently failed banks will get their money, the executives will be fired, and the financiers who made bad investments will just have to take the loss.
“Americans can have confidence that the banking system is safe,” Biden said at the White House before heading out to California for a meeting with foreign leaders and a political fundraiser.
“Your deposits will be there when you need them,” Biden said, referring to customers who had deposits in Silicon Valley Bank, which collapsed last week. People who had deposits in SVB and Signature Bank in New York, which failed over the weekend, will be guaranteed their money back, the Federal Reserve, the Treasury Department and the Federal Deposit Insurance Corporation (FDIC) announced over the weekend.
The same protections will not extend to the executives who ran the bank and the financiers who invested in the bank, Biden said.
