President Biden is defending his administration’s response to troubles in the banking industry and assured Americans that the financial system remains stable and not “about to explode.”
Speaking in Ottawa at a joint press conference with Canadian Prime Minister Justin Trudeau, Mr. Biden said his administration’s actions kept the banking system safe.
“I think we’ve done a pretty damn good job,” Mr. Biden said in response to a reporter’s question. “People’s savings are secure and even those beyond the $250,000 [limit] of the FDIC are guaranteed and the American taxpayer is not going to have to pay a penny. The banks are in pretty good shape.”
Mr. Biden’s remarks come two weeks after the stunning collapse of Silicon Valley Bank and Signature Bank sparked fears of a looming economic crisis.
The Federal Deposit Insurance Corp. covers bank deposits up to $250,000 in the event the institution collapses. However, Mr. Biden this month ordered the FDIC to go beyond that amount and cover all deposits at Signature and Silicon Valley banks.
While Mr. Biden warned that it will take time for things to calm down, he said there is no indication of economic calamity triggered by the banks’ failures.
“I don’t see anything on the horizon that’s about to explode,” Mr. Biden said.
In the aftermath of the two bank collapses, other financial institutions stepped in to save First Republic Bank from failing. A group of 11 banks deposited $30 billion in the beleaguered mid-level lender in an effort to prop it up.
Anxiety continues to grow about the health and safety of the nation’s banking system. Shares of small, regional banks have been hit hard as investors worried they could also collapse, though there is no indication of system-wide concerns.
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