“No loss will be borne by taxpayers” – Corriere.it

“The banking system is safe.” The president of the United States, Joe Biden, has reiterated this several times, in his brief speech from the White House to reassure the population after the failure of Signature Bank, in the wake of that of Silicon Valley Bank. “No losses will be borne by taxpayers,” Biden specified, after the government approved special measures to guarantee all deposits, “the money will be guaranteed by insurance funds.” “I will ask Congress and regulators for stricter banking rules,” Biden said later. The Federal Deposit Insurance Corporation (Fdic), a federal agency that provides bank deposit insurance, took control of Silicon Valley Bank, Biden recalled, leaving without answering journalists’ questions.

On Sunday 12 March, the American president issued a statement in which he praised the “decisive action” of the federal financial agenciesie to protect account holders of Silicon Valley Bank, the bank that went bankrupt last week, and strengthen the financial system before the markets reopen. “The American people and American companies can be sure that their bank deposits are available to them when they need them,” the American president said in a statement in which he promised to clarify what happened. “I am firmly committed to fully answering those responsible for this disaster and continuing our efforts to strengthen the oversight and regulation of the largest banks so that they are no longer in this position,” Biden added. On Sunday, March 12, the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corporation communicated, in a joint note, that account holders of the bankrupt bank will be able to have full access to their funds as of Monday, March 13.

A slow start is expected on Wall Street despite the emergency measures taken in the United States to deal with the failure of the Silicon Valley Bank and to prevent the crisis from infecting the banking system. Not even the reassurances of President Joe Biden, who guaranteed the safety of the banking system, were not enough to dispel the fears of a possible domino effect.