Federal regulators moved quickly on Friday to take over the insolvent Silicon Valley Bank (SVB), as customers withdrew billions from accounts in an apparent bank run. Then over the weekend regulators did the same with New York-based Signature Bank, potentially sending a ripple effect across the American financial industry.
Over the weekend, President Biden, Treasury Secretary Janet Yellen, and National Economic Council Director Lael Brainard began working with bank regulators to ease concern over a potential repeat to the 2008 banking crisis.
Biden praised the team working on the bank failures, saying in a statement on Sunday, “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.”
