US President Joe Biden said that he directed the Treasury Department and his economic advisers to address the problems at Silicon Valley Bank and Signature Bank, adding that those responsible will be held accountable.
"I’m 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," Biden tweeted.
He added that he will have more to say on the subject on Monday morning.
"The American people and American businesses can have confidence that their bank deposits will be there when they need them," he added.
On Sunday, state regulators closed New York-based Signature Bank, the third largest failure in US banking history, two days after authorities shuttered Silicon Valley Bank in a collapse that stranded billions in deposits.
The Federal Deposit Insurance Corporation (FDIC) took control of Signature, which had $110.36 billion in assets and $88.59 in deposits at the end of last year, according to New York state's Department of Financial Services, according to a report by Reuters.
All of the depositors of Signature Bank and Silicon Valley Bank will be made whole, and "no losses will be borne by the taxpayer," the US Treasury Department and other bank regulators said in a joint statement.
Silicon Valley Bank was the nation's 16th largest lender before the shutdown, and its collapse has had a profound impact on the tech industry, as it was a major financier of tech startups.
The startup-focused bank had $209 billion in total assets and about $175.4 billion in total deposits, as of December 2022.
(With inputs from Reuters)
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