After 2nd US bank collapses, Biden to brief today on maintaining banking system

Washington [US]: US President Joe Biden has assured action against "those responsible for the mess" after a banking crisis hit the US with regulations shutting down Signature Bank, a New York-based lender and California-based Silicon Valley Bank within a span of three days.

Biden said that he will on Monday morning (local time) deliver remarks on how his government will maintain a resilient banking system.

Signature Bank was closed by the state regulators on Sunday, becoming the second US bank after Silicon Valley Bank which collapsed on Friday. The crisis-hit Silicon Valley Bank's shares tumbled over 60 per cent, data showed.

"Tomorrow morning, I will deliver remarks on how we will maintain a resilient banking system to protect our historic economic recovery," Biden was cited in the White House statement said Sunday (local time).

The US president said that over the weekend, the US Treasury Secretary and National Economic Council Director worked diligently with the banking regulators to address problems at Silicon Valley Bank and Signature Bank.

"I am pleased that they reached a prompt solution that protects American workers and small businesses, and keeps our financial system safe. The solution also ensures that taxpayer dollars are not put at risk," Biden said.

Biden assured the American people and American businesses to have confidence that their bank deposits will be there when they need them.

"I am firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again," the statement added.

As these banks collapsed, the Federal Deposit Insurance Corporation (FDIC) was appointed as a receiver, which typically means it will liquidate the bank's assets to pay back its customers, including depositors, and others.