The US markets are going through a difficult situation after the bankruptcy of the Silicon Valley Bank and Signature Bank.
The SVB, based in California, announced last Wednesday that it was going to seek a capital increase to try to face financial difficulties that had led it to dump investments worth some 21,000 million dollars, with a loss of about 1,800 million.
This led many clients to withdraw their funds, after which regulators had to close the bank due to lack of liquidity. Subsequently the company’s stock price collapsed, which in turn affected the banking sector in the United States and other countries.
The Treasury Department, the Federal Reserve (Fed) and the Federal Deposit Insurance Corporation (FDIC) announced Sunday that clients will have access to all money deposited in the SVB and promised a similar plan for Signature Bank.
But uncertainty is present and one of the biggest critics of the situation -and particularly of Joe Biden- is the former president donald trumpwho went to his Truth Social platform to state: “We will have a much bigger and more powerful depression than 1929. As proof, the banks are already starting to collapse!!!”
(Keep reading: Inflation in the US dropped four tenths, standing at 6% in February).
In addition, he compared Biden to Herbert Hoover, the president who led the United States during the great Wall Street crisis of 1929.
What does the current president say?
Joe Biden sent a message of reassurance to Americans on Monday by stressing that the country’s banking system “is safe” and assured customers of Silicon Valley Bank and Signature Bank that they will have their deposits.
“Your deposits will be there when you need them,” he said in a brief speech to reporters a day after regulators launched a plan to protect Silicon Valley Bank’s (SVB) deposits after it collapsed and closed another banking institution, the Signature Bank, under the same parameters.
(Also read: Crisis in Silicon Valley Bank: Biden says those responsible must be ‘accountable’).
“In my Administration, nothing and no one is above the law,” stressed the president, assuring that the taxpayer will not assume any loss and that the managers of those banks “will be fired”.
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*With information from EFE
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