Biden says FDIC has control of assets of Silicon Valley Bank, Signature, no losses will be borne by US taxpayers

US President Joe Biden said on Monday that the administration's swift actions to help depositors in two US banks should give Americans confidence that the banking system is safe.

The US Federal Deposit Insurance Corporation has taken control of assets of Silicon Valley Bank, Signature Bank and no losses will be borne by US taxypayers, said Biden.

The managers of the banks will be fired, Biden noted, and investors will lose money. "They knowingly took a risk, and when the risk didn't pay off his adjusters lose their money. That's how capitalism works," he said.

"Investors in the banks will not be protected, no one is above the law. People running these banks should not be there any more," he said.

FDIC on Monday said it had transferred all Silicon Valley Bank deposits to a newly created bridge bank and that all depositors would have access to their money beginning Monday morning.

Biden also promised new regulation after the biggest US bank failure since the 2008 financial crisis.

"I'm going to ask Congress and the banking regulators to strengthen the rules for banks to make it less likely this kind of bank failure will happen again, and to protect American jobs as a small business," he said. Biden faces a divided Congress unlikely to approve tougher new rules.

His economic team worked with regulators over the weekend on the measures, which included guaranteeing deposits in both banks, setting up a new facility to give banks access to emergency funds and making it easier for banks to borrow from the Federal Reserve in emergencies.

With inputs from Reuters