Biden tells US to have confidence in banks after collapse

President Joe Biden on Monday told US residents the nation's financial systems are sound, following the swift and stunning collapse of two banks that prompted fears of a broader upheaval.

“Americans can have confidence that the banking system is safe,” he said from the Roosevelt Room before a trip to the West Coast. “Your deposits will be there when you need them.”

US regulators closed the Silicon Valley Bank on Friday after it experienced a traditional bank run, where depositors rushed to withdraw their funds all at once. It is the second largest bank failure in US history, behind only the 2008 failure of Washington Mutual.

In a sign of how fast the financial bleeding was occurring, regulators announced that New York-based Signature Bank had also failed.

The president, speaking from the Roosevelt Room shortly before US markets opened, said he'd seek to hold those responsible and pressed for better oversight and regulation of larger banks. And he promised no losses would be borne by taxpayers.

At more than $110 billion in assets, Signature Bank is the third-largest bank failure in US history. Another beleaguered bank, First Republic Bank, announced Sunday that it had bolstered its financial health by gaining access to funding from the Fed and JPMorgan Chase.

The developments left markets jittery as trading began Monday. The Asian and European markets fell but not dramatically, and US futures were down.

AP/