After the US SVB Bankruptcy... President Biden Says "Banks Are in Quite Good Condition"

After the collapse of Silicon Valley Bank (SVB), concerns about the soundness of U.S. banks have increased, prompting U.S. President Joe Biden to say, "It will take more time for the situation to calm down, but I do not see anything that looks like it is about to explode soon."

President Biden made these remarks during a press conference following a summit with Canadian Prime Minister Justin Trudeau on the 24th (local time), stating that "banks are in pretty good shape."

He said, "I understand the anxiety about this issue," adding, "Mid-sized banks should be able to survive, and I believe they will."

He also said, "The situation unfolding in Europe is not a direct result of what happened in the United States."

Regarding the U.S. government's announcement to guarantee all deposits exceeding the protection limit ($250,000) for SVB and Signature Bank to prevent the spread of financial instability, President Biden said, "In my opinion, we handled it quite well," and added, "Deposits are safe, and the Federal Deposit Insurance Corporation (FDIC) has promised that no taxpayer money will be used."

He continued, "If further instability arises, the FDIC is already in a position to use its authority to guarantee deposits exceeding $250,000, as it has done before."

This content was produced with the assistance of AI translation services.