Biden Says Those Responsible Will Be Held Accountable after Regulators Shut Down Signature Bank

US President Joe Biden said action will be taken against those who were responsible for the banking crisis in the country, shortly after regulators closed Signature Bank, a New York-based regional-size lender.

Biden will address the issue on Monday, his office said and he is expected to reassure Americans regarding the nation’s banking system following the shutting down of both banks.

“(We are) firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again,” Biden said according to news agency Associated Press.

American banking regulators rushed to close the Silicon Valley Bank (SVB), a financial institution with more than $200 billion in assets, on Friday. The regulators witnessed a traditional run on the bank where depositors rushed to withdraw their funds all at once. SVB’s shutting down has been the second-largest bank failure in US history, following the 2008 failure of Washington Mutual.

Biden said that the American banking system remains resilient and steps will be taken to protect the nation’s historic economic recovery. He further added that treasury secretary Janet Yellen and the National Economic Council Director Brian Deese have reached a solution to protect the nation’s financial system.

“At my direction, Yellen and my National Economic Council Director worked with banking regulators to address problems at Silicon Valley Bank and Signature Bank. I’m pleased they reached a solution that protects workers, small businesses, taxpayers, and our financial system,” Biden said in a tweet.

The Federal Reserve, the Treasury Department and the Federal Deposit Insurance Corporation (FDIC) said Sunday that all Silicon Valley Bank clients would be protected and able to access their money while announcing measures to protect the bank’s customers and prevent additional bank runs.

“This will ensure that the US banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth,” the agencies said in a joint statement, accessed by the Associated Press.

Now depositors at Silicon Valley Bank and Signature Bank, including those whose holdings exceed the $250,000 insurance limit will have access to their money on Monday.

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