[Washington Times] The Biden administration said Sunday that it would guarantee all deposits at the now-shuttered Silicon Valley Bank but insisted the move was not a taxpayer-funded bailout, while regulators closed a second institution, New York City’s Signature Bank, amid fears of an unfolding economic crisis.
Some business leaders warned that it might be just the beginning of a national reckoning with institutions that value left-wing politics over sound investing.
Underscoring the urgency of the situation, President Biden said he will address the nation Monday morning “on how we will maintain a resilient banking system to protect our historic economic recovery.”
In a statement, the president said late Sunday night that he is pleased that his top advisers and bank regulators reached a “prompt solution” on the two shuttered banks “that protects American workers and small businesses, and keeps our financial system safe.”
Treasury Secretary Janet Yellen seemed earlier Sunday to rule out a bailout of the California-based bank but said the government would work around the clock to find solutions ahead of Monday morning’s opening bell on Wall Street. Customers include household brands such as Roku and Etsy.
Later Sunday, Ms. Yellen, Federal Reserve Chair Jerome Powell and Federal Deposit Insurance Corp. Chairman Martin J. Gruenberg released a joint statement saying they had reached a “resolution” that would allow all depositors at SVB to access all their money Monday morning.
“No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer,” the regulators said.
Mr. Biden reiterated that claim in his statement, saying taxpayer dollars are not at risk.
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