When asked whether the banking crisis has subsided, Biden told reporters, “Yes,” according to Reuters.
The US President sought to reassure investors and depositors that the global banking system is safe, after financial stocks lost billions of dollars in value since the collapse of the two medium-sized US banks during the past week.
Earlier this week, Biden pledged Americans that their deposits are safe.
California regulators shut down the Silicon Valley Bank about a week ago and assigned jurisdiction over the bank to the Federal Deposit Insurance Corporation.
This is the biggest collapse since Washington Mutual during the 2008 financial crisis.
The SVB Financial Group, the bank’s parent company, said on Friday that it had filed for restructuring under Chapter 11 of the Bankruptcy Protection Act.
Major US banks poured $30 billion in deposits into the First Republic the day before, as it sought to save the medium-sized bank, which was engulfed by the crisis caused by the collapse of “Silicon Valley” and “Signature”.
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