Joe Biden vows to protect US banking sector

ALBAWABA - U.S. President Joe Biden vowed to protect his country's banking system in the wake of the collapse of the Silicon Valley and Signature banks, which threatened to trigger a broader systemic crisis.

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In a statement released by the White House, President Biden warned that the authorities will find those responsible for the collapse of the Silicon Valley Bank (SVB) and Signature Bank and will hold them responsible.

"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, President Biden said.

Biden praised the treasury secretary and the director of the National Economic Council, saying both "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 president said.

"The solution also ensures that taxpayer dollars are not put at risk," he added.

The comment came as news emerged on a bailout package for SVB, which envisages that all depositors will have access to all their money on Monday.

Biden said the "American people and American businesses can have confidence that their bank deposits will be there when they need them. He explained that on Monday, "I will deliver remarks on how we will maintain a resilient banking system to protect our historic economic recovery."

Silicon Valley, America's 16th largest bank, failed after depositors rushed to withdraw their deposits last week as public anxiety climaxed over the bank's financial situation. Depositors were mainly technology workers and venture capital-backed companies.

As a result, the bank failed to cope with the massive withdrawals and last attempts to raise new money.

On Sunday, regulators with the New York State Department of Financial Services closed Signature Bank. The bank is unable to close a sale or bolster its finances before Monday to protect its assets after customers began withdrawing their deposits in favor of bigger institutions.

Despite the U.S. assurances and financial moves, European stock markets fell deeper in the red on Monday, the Insider Paper reported.

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It said the London’s benchmark FTSE 100 index shed 1.8 percent to 7,608.75 points.

In the eurozone, the Frankfurt DAX dropped by 2.4 percent to 15,052.34 points, while the Paris CAC 40 lost 2.2 percent to 7,062.20 points, according to Insider Paper.