Biden emphasizes safety of banking system in speech

In a speech following the failures of Silicon Valley Bank and Signature Bank over the weekend, President Biden today said that Americans can have confidence that the banking system is safe and highlighted the decision of the Treasury Department, Federal Reserve and FDIC to guarantee the uninsured depositors at these banks.

“Your deposits will be there when you need them,” Biden said. “Small businesses across the country that deposit accounts at these banks can breathe easier knowing that they will be able to pay their workers and pay their bills. And their hard-working employees can breathe easier as well.”

In a statement, ABA said it shares Biden’s confidence in the banking system. “Every American should know that their accounts are safe and their deposits are protected. Our industry will work with the administration, regulators and Congress to further bolster that trust,” the association said.

In related news, the Federal Reserve announced that Vice Chairman for Supervision Michael Barr would lead a review of the agency’s supervision and regulation of SVB in light of its failure. Fed Chairman Jerome Powell said the events surrounding SVB’s failure demand “a thorough, transparent and swift review” of the agency’s regulatory actions regarding the bank. The review will be publicly released by May 1, according to the agency.