“Individuals can have faith that the banking system is secure. Your deposits shall be there whenever you want them,” Biden stated in televised remarks from the White Home after Silicon Valley Financial institution’s failure and the federal takeover of a second financial institution.

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Whereas the federal government is guaranteeing that SVB depositors get their a reimbursement, “no losses shall be borne by the taxpayers,” Biden stated.

“The cash will come from the charges that banks pay into the deposit insurance coverage.”

Biden challenged Congress to enact extra stringent rules, saying that “robust” safeguards introduced in after the 2008 monetary collapse had been undone beneath his Republican predecessor Donald Trump.

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“I will ask Congress and the banking regulators to strengthen the foundations for banks to make it much less probably this sort of financial institution failure would occur once more,” Biden stated.

He made clear he expects the results to fall on the shoulders of these accountable and that the federal government’s speedy response over the weekend was not a financial institution bailout, as occurred in 2008.

“We should get the total accounting of what occurred and why, (so) these accountable will be held accountable,” he stated.

Not solely will taxpayers not be answerable for overlaying the deposits, however “the administration of those banks shall be fired,” he stated.

As soon as a financial institution is taken over by the federal government, “the folks working the financial institution mustn’t work there anymore.”

Biden burdened that buyers who purchased into SVB weren’t getting bailed out.

“They knowingly took a threat and when the dangers did not repay, buyers lose their cash. That is how capitalism works,” he stated.