On Monday, President Joe Biden addressed the public to assure them of the safety and stability of the US banking system. This speech came after the collapse of three crypto-friendly banks, namely Silvergate, Signature, and Silicon Valley Bank, which caused much uncertainty and concern among the public.
However, President Biden’s message was clear: the banking system remains secure despite recent events. His words were intended to restore confidence in the banking sector and alleviate any fears that may have arisen due to the recent bank collapses.
The recent banking meltdown has left the market in turmoil. Still, President Biden sought to ease customers’ concerns impacted by the closure of Signature Bank and Silicon Valley Bank. He reassured them that the government would honor their deposits and they could “rest assured” that their funds were safe.
This message was meant to provide much-needed relief to those impacted by the banking collapse and instill confidence in the banking system. In addition, the President confirmed that all customers who held deposits with the collapsed banks could be assured that their funds would be protected and accessible starting today.
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President Biden’s statement aligned with his recent call over the weekend to reinforce the regulation and oversight of larger banks. President Biden’s recent reassurances are part of a series of regulatory measures implemented over the past few days to prevent further bank runs.
The United States Department of the Treasury, the FDIC, and the Federal Reserve issued a joint statement on Sunday, confirming their commitment to honor all deposits in both Silicon Valley Bank and Signature Bank.
Signature Bank in New York was closed on Sunday by its state chartering authority. Despite recent developments, the joint statement aimed to reassure depositors that their funds would be safeguarded and made available.
The UK, the government, and the Bank of England played a role in facilitating HSBC’s acquisition of Silicon Valley Bank’s UK branch for a mere one euro over the weekend. This move was seen as a strategic step to safeguard the interests of Silicon Valley Bank’s UK-based customers and prevent further disruption in the banking sector.
Signature Board Member Claims Regulators Discredited Crypto
Barney Frank, a board member of Signature Bank, has alleged that regulators who ordered the Signature Bank’s closure over the weekend did so to convey the message that cryptocurrency is detrimental.
According to Frank, the regulators’ decision to shut down the bank was motivated by a desire to discredit the crypto industry. The collapse of Silvergate Bank early last week was one of the factors that led to a deposit run on Signature Bank on Friday.
Barney Frank, a former US Representative and significant contributor to the Dodd-Frank regulatory law and a board member of Signature Bank, stated that although the bank had managed to stabilize the situation on Sunday, regulators chose to close the bank anyway.
Frank said this decision was unwarranted and unjustified, given the bank’s efforts to address the situation and stabilize its operations. Adrienne Harris, the Superintendent of the New York Department of Financial Services, refuted the allegation that the closure of Signature Bank was an attack on the crypto industry.
Harris emphasized that the bank had a diverse range of depositors, indicating that the move was not targeted toward any specific industry. By citing the bank’s “broad depositor base,” Harris aimed to clarify the reasons behind the regulatory action and dispel any misconceptions about its intent.