Biden assures markets banking crisis over
Recently, the US banking system has been hit by a collapse of the two mid-size US lenders, Silicon Valley Bank (SVB) and Signature Bank. The US authorities launched emergency measures to stop the contagion, and it seems that now, the crisis has come under control. US President Joe Biden told a nationwide audience that the US government had taken steps to prevent an escalating financial crisis from the Californian bank collapse. Biden reassured investors that the turbulence had calmed down. He even vowed to protect depositors’ money and promised Americans that their deposits were safe. He also blamed the banks for poor management. Notably, it took the US authorities less than a week to solve the problem. On March 10, 2023, California regulators closed Silicon Valley Bank, citing inadequate liquidity and insolvency. Signature Bank was shut down on March 12. Yet, on March 16, Joe Biden declared the US banking system was "safe". SVB collapsed after its investments greatly decreased in value amid rising Fed interest rates. The situation deteriorated further when depositors withdrew large sums of money as panic spread.