Biden backs strength of banking system after failure of SVB, Signature Bank

By Scott Kanowsky 

Investing.com -- U.S. President Joe Biden looked to provide reassurance over the state of the country's banking system on Monday, after federal authorities bailed out depositors in failed lenders Silicon Valley Bank (NASDAQ:SIVB) and Signature Bank (NASDAQ:SBNY).

The U.S. Treasury, Federal Reserve, and Federal Deposit Insurance Corporation put together a bailout package over the weekend that essentially protected all of SVB's depositors, including those with assets above the federally-guaranteed $250,000 limit. Regulators also took control of SVB's stricken peer Signature Bank, a major bank used by cryptocurrency companies.

Biden backed the decisions, saying they will help protect companies and individuals who have placed their funds in these lenders.

"Americans can have confidence that the banking system is safe," Biden said in a short address, adding that taxpayers will not be on the hook for any losses incurred by SVB or Signature Bank.

"Your deposits will be there when you need them. Small businesses across the country that deposit accounts at these banks can breathe easier knowing they'll be able to pay their workers and pay their bills."

With $212 billion in assets, SVB was the second-biggest lender to fail in U.S. history, while Signature Bank, which controlled $110B in assets, was the third-largest.