President Biden on Monday blamed the collapse of Silicon Valley Bank and the closure of Signature Bank on former President Trump’s 2018 decision to scrap some Obama-era banking regulations.
“Unfortunately, the last administration rolled back the regulations,” Biden said.
Biden also asserted that the US banking system is “safe and secure.”
“Americans can have confidence that the banking system is safe,” Biden said in a White House speech before leaving for a three-day visit to California and Nevada.
The president said he plans to ask Congress and banking regulators to restore Obama-era rules put in place to prevent another global financial crisis. In 2018, Trump signed bipartisan legislation that exempts mid-market institutions like Silicon Valley Bank from these rules.
All Silicon Valley Bank customers will be protected and have access to their funds starting Monday, the US Treasury Department, Federal Reserve and Federal Deposit Insurance Corp said. in a joint announcement on Sunday.
“They will be able to pay their workers and pay their bills,” the president promised.
Biden also vowed to hold those responsible for the collapse accountable, saying the bank’s shareholders would not be protected.
https://www.latimes.com/politics/story/2023-03-13/biden-blames-trump-silicon-valley-bank Biden blames Trump deregulation for Silicon Valley Bank failure