Joe Biden, the President of the United States, believes that the recent turmoil in the banking sector has not been completely resolved. Therefore, his administration is prepared to implement further legislative changes to deal with any potential issues in the future.
Silicon Valley Bank (SVB) and Signature Bank, two of America’s major banks, recently faced severe operational issues and were closed by regulators. Meanwhile, major institutions outside the US, such as Credit Suisse and Deutsche Bank, also reported liquidity problems.
- President Biden commended his administration for taking adequate measures during the banking crisis, which raised fears of another large financial crash like the one in 2008:
“We’ve done what we need to do executively. I feel confident things are settling out. The markets seem to be responding.”
- However, despite his positive statement, the President acknowledges the possibility of further problems in the banking industry, and the government is closely monitoring the situation:
“No, it’s not over yet. We’re watching very closely. I think my team has handled it very well so far. And rather than get ahead of myself here, I think let’s let things move the way they are.”
- US watchdogs closed Signature Bank and SVB this month due to concerns about their solvency. Both banks served numerous cryptocurrency clients.
- During his first speech after the collapse, Biden described the US banking system as “safe”. However, some American banks are still under pressure. First Republic Bank, one of the top 15 largest banks in the country, has seen its shares fall nearly 90% in the past 30 days.
- Credit Suisse, headquartered in Switzerland, has also experienced significant issues recently and was acquired by UBS Group, Switzerland’s largest banking institution, for over $3 billion.
- Bitcoin responded positively to the deal, reaching over $28,500 for the first time since June 2022.