Americans can "have confidence" in the banking system: Biden

“The money will come from the fees that banks pay for deposit insurance,” he said.

“I’m going to ask Congress and banking regulators to tighten the rules for banks so that this type of bank failure is more unlikely to happen again,” he said in televised remarks from the White House.

Biden added that “the management of these banks will be fired.”

The president of the United States tries to reinforce confidence, the only bulwark against a large-scale contagion after the bankruptcy of the SVB.

The authorities have taken measures in the United States and in Europe to protect the deposits of this Californian bank that failed and is under public trusteeship.

Governor asks New Yorkers to calm down

Meanwhile, the governor of New York, Kathy Hochul, said Monday that the New York banking system remains safe after the bankruptcy of the regional bank Signature Bank this weekend.

“The main message I want to get across is that New Yorkers need to have confidence that their money is safe, wherever they choose to put it,” Hochul said at a news conference in Manhattan.

Signature Bank, a New York state-based financial institution with a large real estate lending business that recently also began servicing the cryptocurrency industry, was shut down by state authorities on Sunday in the wake of the Silicon Valley collapse. Bank (SVB).

“We don’t have any proof that anyone else is in a situation like Signature’s at this time,” said the Democratic politician.

However, the governor stressed that her team wants to ensure that “there is no domino effect” such as clients, overcome by nervousness, start withdrawing their money, since that would create instability.

Hochul also highlighted the “quick action” of the Democrat Joe Biden Administration this weekend in the face of this banking crisis.

By this, Hochul was referring to the action announced on Sunday by US regulators announcing a plan to protect Silicon Valley Bank (SVB) deposits after its collapse.

The Treasury Department, the Federal Reserve (Fed) and the Federal Deposit Insurance Corporation (FDIC) announced in a statement that customers will have access, starting this Monday, to all money deposited in the SVB.

With information from AFP and EFE.