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Biden believes banking crisis in US subsides

18 March 2023 19:50 (UTC+04:00)
Biden believes banking crisis in US subsides

US President Joe Biden expressed confidence that the US banking crisis has subsided. He was talking to reporters on the South Lawn of the White House before flying to Delaware, Azernews reports citing TASS.

"Yes" he said responding to a question if he thinks that the banking crisis has calmed down. The President's words are quoted by the White House press corps.

Earlier on Friday, Biden asked the US Congress to give regulators more authority to claw back pay and penalize executives at distressed banks "whose mismanagement contributed to their institutions failing." In particular, he asked Congress to authorize the US Federal Deposit Insurance Corporation to claw back compensation, including from the sale of stocks, from executives at failed banks such as Silicon Valley Bank (SVB) and Signature Bank. Biden also called on Congress to expand the FDIC’s authority to bar executives of failed banks from working in the banking sector.

On March 10, the California Department of Financial Protection announced the bankruptcy of SVB, one of the largest banks in the United States. This became the largest bankruptcy of a US bank since times of the 2008 financial crisis. The Federal Deposit Insurance Corporation was appointed as the receiver for Silicon Valley Bank.

On March 12, the New York state regulator decided to close Signature Bank in order to eliminate systemic risks.


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