Official Statement by President Joe Biden
Over the weekend, and at my direction, the Treasury Secretary and my National Economic Council Director worked diligently with the banking regulators to address problems at Silicon Valley Bank and Signature Bank.
I am pleased that they reached a prompt solution that protects American workers and small businesses, and keeps our financial system safe. The solution also ensures that taxpayer dollars are not put at risk.
The American people and American businesses can have confidence that their bank deposits will be there when they need them.
I am firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again.
Tomorrow morning, I will deliver remarks on how we will maintain a resilient banking system to protect our historic economic recovery.
About Silicon Valley Bank
Silicon Valley Bank, also known as SVB, is a renowned financial institution that has been serving the innovation community for over 35 years. The bank was founded in 1983 and initially aimed to provide financing solutions for startups and emerging technology companies in Silicon Valley.
Today, it has expanded its services to clients worldwide and before its collapse was a leading provider of financial solutions for innovative businesses.
SVB specialized in providing various banking services such as loans, credit cards, deposits, foreign exchange, and cash management solutions to private equity firms, venture capitalists and emerging technology companies.
The bank had established itself as an expert in the innovation sector by delivering personalized services tailored specifically for entrepreneurs’ unique needs.
The recent failure of Silicon Valley Bank was from miss management of the bank’s short medium and long-term investments. The bank lacked liquidity and was therefore unable to handle a run of larger withdrawals.
About Signature Bank
Signature Bank was a New York-based bank that specialized in providing commercial banking services to individuals, businesses, and institutions. The bank was founded in 2001 by a team of experienced banking professionals who saw an opportunity to provide personalized banking services to the local community.
Signature Bank has just announced its closure and over 30 locations across New York City will be affected.
Sources: THX News & The White House.
