Biden Promises Deposit Guarantee For US Bank Customers “It’s A Nightmare”: Oil Spill Spreads Off The Philippines

US President Joe Biden has reaffirmed the safety of deposits for US bank customers following the closure of two US banks since Friday. “Americans can rest assured that the banking system is safe,” Biden said in a short speech in Washington on Monday.

Customers who had their money at Silicon Valley Bank and Signature Bank, which were closed over the weekend, are protected and can access their savings starting today, Biden said. This also applies to small businesses.

The investors behind the banks, on the other hand, would have to bear their losses themselves. In addition, the managers of the state-controlled financial institutions would be fired, Biden announced. The cost of a deposit guarantee should not be borne by the taxpayer, Biden said. A deposit protection fund, into which all banks would deposit, would pay for this.

On Friday, Silicon Valley Bank, which specializes in seed funding, was temporarily closed and placed under state control after a failed emergency capital raise. This caused unrest all over the world. Other banks also came under considerable pressure on the stock market. The New York-based Signature Bank is also closed on Sundays. (sda/awp/dpa)