Biden to defend US banking system after SVB, Signature collapse

Chris

Administrator
Staff member
Biden to defend US banking system after SVB, Signature collapse
Biden on Sunday hinted at new regulation of big banks after the biggest US bank failure since the 2008 financial crisis, but faces a divided Congress.
By REUTERS

President Joe Biden will on Monday address a banking crisis that led US regulators to step in with a series of emergency measures after the collapses of Silicon Valley Bank and Signature Bank threatened to trigger a broader systemic crisis. Biden on Sunday hinted at new regulation of big banks after the biggest US bank failure since the 2008 financial crisis, but faces a divided Congress unlikely to approve tougher new rules.

His economic team worked with regulators over the weekend on the measures, which included guaranteeing deposits in both banks, setting up a new facility to give banks access to emergency funds and making it easier for banks to borrow from the Federal Reserve in emergencies.

more............. https://www.jpost.com/business-and-innovation/banking-and-finance/article-734137
 

Ghoti Ichthus

Pray so they do not serve alone. Ephesians 6:10-20
Deposits are already insured via the Federal Deposit Insurance Corporation (FDIC).
After reading the article, it looks like President Biden is trying to move responsibilities from FDIC to Federal Reserve. They already have a lot more power over our money and economy concentrated in just a few hands than I think is reasonable, especially since they're private, not government.
:hmmm This might be one of those things necessary to centralize all control of all money and dictate who can access what :tappingfoot

I don't like it. The FDIC has an excellent track record, while the Federal Reserve, not so much.


From the FDIC website:

"What We Do

The mission of the Federal Deposit Insurance Corporation (FDIC) is to maintain stability and public confidence in the nation's financial system. In support of this goal, the FDIC:
  • Insures deposits,
  • Examines and supervises financial institutions for safety and soundness and consumer protection,
  • Works to make large and complex financial institutions resolvable, and
  • Manages receiverships.
An independent agency of the federal government, the FDIC was created in 1933 in response to the thousands of bank failures that occurred in the 1920s and early 1930s. Learn more about the history of the FDIC.

The FDIC receives no Congressional appropriations - it is funded by premiums that banks and savings associations pay for deposit insurance coverage. The FDIC insures trillions of dollars of deposits in U.S. banks and thrifts - deposits in virtually every bank and savings association in the country.

Deposit Insurance

"The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. Since the start of FDIC insurance on January 1, 1934, no depositor has lost a penny of insured funds as a result of a failure. The FDIC's Electronic Deposit Insurance Estimator can help you determine if you have adequate deposit insurance for your accounts. The FDIC insures deposits only. It does not insure securities, mutual funds, or similar types of investments that banks and thrift institutions may offer."

More
https://www.fdic.gov/about/what-we-do/
 

Ghoti Ichthus

Pray so they do not serve alone. Ephesians 6:10-20
FDIC Named Receiver for Silicon Valley Bank

Press Release

FDIC Creates a Deposit Insurance National Bank of Santa Clara to Protect Insured Depositors of Silicon Valley Bank, Santa Clara, California

For Immediate Release

Last updated: March 12, 2023

"WASHINGTON – Silicon Valley Bank, Santa Clara, California, was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB). At the time of closing, the FDIC as receiver immediately t transferred to the DINB all insured deposits of Silicon Valley Bank.

All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023. The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors.

Silicon Valley Bank had 17 branches in California and Massachusetts. The main office and all branches of Silicon Valley Bank will reopen on Monday, March 13, 2023. The DINB will maintain Silicon Valley Bank’s normal business hours. Banking activities will resume no later than Monday, March 13, including on-line banking and other services. Silicon Valley Bank’s official checks will continue to clear. Under the Federal Deposit Insurance Act, the FDIC may create a DINB to ensure that customers have continued access to their insured funds."

More
https://www.fdic.gov/news/press-releases/2023/pr23016.html
 
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