Joe Biden says US banking system is safe and vows to strengthen rules after failure of Silicon Valley Bank and Signature Bank

US president makes statement on Monday morning before US markets open

Remarks follow government actions on Sunday guaranteeing all deposits at Silicon Valley Bank and New York’s Signature Bank

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US President Joe Biden delivering remarks on the United States banking system on Monday morning, before the opening of US markets. Photo: EPA-EFE

Published: 11:42pm, 13 Mar 2023Updated: 5:18am, 14 Mar 2023

Responding to two bank failures over three days, US President Joe Biden vowed on Monday to push Congress and regulators to “strengthen the rules” on banks and assured depositors that “the banking industry is safe”.

Biden blamed the Donald Trump administration and its easing of regulatory oversight of community banks and credit unions for undermining efforts to guard against the next 2008-style financial crisis.

That meltdown wreaked havoc on not only the US financial system but the entire global economy.

The president made his remarks in a televised address shortly before the US markets opened on Monday morning.

Wall Street’s three major stock indexes were hovering around flat with only marginal gains on Monday morning session after the regulatory actions announced on Sunday night and Biden’s speech. But in early trading, the S&P 500 bank index tumbled over 7 per cent, with the biggest decliner, First Republic Bank, dropping more than 76 per cent.

Silicon Valley Bank headquarters in Santa Clara, California. The bank became the biggest US bank failure in more than a decade after its customer base of tech start-ups grew worried and yanked deposits. Photo: Bloomberg

The US government announced on Sunday night that it would guarantee all deposits at Silicon Valley Bank in California, which regulators shut down on Friday.