Biden assures that “they will do what is necessary” so that the intervention of Silicon Valley Bank “does not affect other countries”.
The President of the United States, Joe Biden, appeared Monday in Washington to give an account “on the maintenance of the banking system” after the intervention by his government of Silicon Valley Bank (SVB).
Silicon Valley Bank, a financial institution with a significant client base among technology startups, was last Friday intervened by the Federal Deposit Insurance Corporation (CFSD) for the doubts about its liquidity and solvency.
The U.S. president assured at the press conference that “no one is above the law” and that since he was vice president of the Obama Administration, mechanisms were created to. “reduce the risk” of another economic crisis occurring again.
“Americans can rest assured, the U.S. financial system is safe,” the president acknowledged, adding that “deposits are safe” and that they will “guarantee” that “they will do what is necessary to ensure that this does not affect other countries.“.
“Americans have to trust the banking and financial system. They can breathe easy because companies are going to be able to pay their bills and their employees“, Biden has said.
SVB’s bankruptcy has caused the share price of the largest European banks to fall in the first hours of trading despite the intervention of the US government and the Fed to insure deposits, thus dragging down the main stock market indexes in Europe.