Biden ensures US banking system 'safe' after banks' collapse

By Ovunc Kutlu

ISTANBUL (AA) – President Joe Biden on Monday assured Americans that the US banking system and depositors are 'safe' after the collapse of two large banks in less than a week.

"Americans can have confidence that the banking system is safe. Your deposits will be there when you need them," he told in a news conference at the White House.

His comments came days after the sudden collapse of two banks in the US – Silicon Valley Bank and Signature Bank.

Biden said he instructed last week his team to act quickly to preserve the interests of small businesses and depositors, including Treasury Secretary Janet Yellen.

He underscored that the Federal Deposit Insurance Corporation (FDIC) took control of assets of Silicon Valley Bank and Signature Bank over the past days.

"All customers who had deposits in these banks can be rest assured that they will be protected and they will have access to their money as of today. This includes small businesses," Biden said.

"No losses will be borne by the taxpayers," he underlined.

"Instead, the money will come from the fees of banks paying to the deposit insurance fund."

The management of these banks "will be fired," the US president vowed, adding "if the bank is overtaken by the FDIC, the people running the bank should not work there anymore."

He further said: "Investors and the banks will not be protected. They knowingly took a risk and when the risk did not pay off, investors lose their money. That's how capitalism works."