Banking crisis: President Joe Biden says taxpayer funds won’t be used to bailout SVB, Signature bank
presents a systemic risk and said they were taking it over. Biden said Monday that managers of the banks would be fired, and investors would not be protected.Regulators offer plan to ‘ensure U.S. banking system continues to perform its vital roles’
‘A brutal day’:How Silicon Valley Bank’s failure shook businesses from wine country to London
Janet Yellen: No bailout for Silicon Valley Bank; focus is on helping depositors
Dow Jones Industrial Average fell 150 points on Monday morning as the markets reacted to Biden’s speech and federal regulators’ plan.
made a run on the bank, withdrawing cash at a rapid pace and forcing the bank into a position where it had to sell bonds at a loss to cover the withdrawals.
Treasury Secretary Janet Yellen stressed Sunday that since the banking system’s failure, better controls are in place, including capital and liquidity supervision. She said on CBS’ “Face the Nation” that the system proved its “resilience” during the coronavirus pandemic, “so Americans can have confidence in the safety and soundness of our banking system.”
Francesca Chambers is a White House Correspondent for USA TODAY. Follow her on Twitter @fran_chambers.