Biden says U.S. banking system is strong after two banks collapse

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Silicon Valley Bank closed on Friday. Associated Press/Photo by Benjamin Fanjoy

Biden says U.S. banking system is strong after two banks collapse

President Joe Biden said Monday that the government is investigating the failures of two American banks over the weekend. California-based Silicon Valley Bank collapsed Friday and Signature Bank failed on Sunday in New York. They were the second and third largest bank collapses in U.S. history. Federal agencies have taken control of both banks’ assets and officials say all depositors will have access to their money. Biden said taxpayer funds will not be used to bail out either bank.

What else is being done to mitigate the collapses? The Federal Reserve on Sunday introduced an emergency bank lending program meant to avoid a wave of bank runs. Biden on Monday said he will ask Congress and regulators to strengthen oversight and regulations for banks.

Dig deeper: Read Jerry Bowyer’s column in WORLD Opinions about experts’ no-confidence vote for America’s 2023 economy.

Lauren Canterberry

Lauren Canterberry is a reporter for WORLD. She graduated from the World Journalism Institute and the University of Georgia with a degree in journalism, both in 2017. She worked as a local reporter in Texas and now lives in Georgia with her husband.