SVB customers will have access to funds

Silicon Valley Bank seized after run by depositors
Posted at 12:28 PM, Mar 13, 2023
and last updated 2023-03-13 13:30:18-04

President Joe Biden will deliver remarks Monday on how the U.S. will maintain a steady banking system.

The speech comes less than a week after Silicon Valley bank collapsed and caused the second-largest failure of a financial institution in U.S. history since 2008.

Following the collapse, President Biden said customers' money is safe. In a statement Sunday, the White House said Americans can have quote "confidence that their bank deposits will be there when they need them."

Treasury Secretary Janet Yellin said the government has no plans to bail out SVB. But she said steps will be taken to provide assistance in resolving the matter. Lawmakers said, there need to be repercussions for this failure.

"We cannot keep bailing out private companies because there's no consequences to their actions. People when they make mistakes or break the law have to be held accountable in this country," Republican Rep. Nancy Mace of South Carolina said.

Sunday banking regulators closed a second bank at risk, the signature bank of New York, and the bank's senior management was removed.

The FED has announced an emergency lending program intended to prevent a wave of people pulling money out of banks. Essentially lending freely to the banking system so that customers would be confident that they could access their accounts whenever needed.