United States President Joe Biden has blamed his predecessor Donald Trump for the collapse of Silicon Valley Bank and Signature Bank. He said this during his speech at the White House.
It should be noted that Silicon Valley Bank and Signature Bank, among the largest banks in the United States, have been closed, which could cause a larger systemic crisis. This is the biggest collapse of the banking system since the 2008 financial crisis.
At the same time, Biden believes that Americans can be confident in the safety of the country’s banking system. He noted that United States citizens will not suffer losses due to the situation regarding Silicon Valley and Signature Bank.
Earlier, the American television channel CNN had reported that the United States authorities’ attempt to eliminate the consequences of the collapse of Silicon Valley Bank (SVB) had failed to reassure investors and caused global panic in the financial market. CNN noted that despite HSBC’s purchase of Silicon Valley Bank’s (SVB) British branch for 1 pound and the assurances that customers would be able to continue banking transactions in the normal mode, securities began to decline during early morning trading. The report stated that after the start of trading, the European Euro Stoxx 600 index fell by 2.5%, the London FTSE 100 by 2.2%, and Stoxx Europe 600 Banks depreciated by 5% for the first time since March 2021.
Meanwhile, the United States Federal Reserve System (FRS) had decided to provide additional funds to banks to maintain financial stability.
The day before, the United States Secretary of the Treasury, the Federal Reserve System, and the United States Federal Deposit Insurance Corporation had jointly promised in a statement that all depositors of Silicon Valley Bank (SVB) would have access to their deposits starting Monday, March 13.
