Wednesday, March 29, 2023

Biden is proposing greater regulations for large US banks after the bankruptcy of Silicon Valley Bank

Silicon Valley Bank (SVB) and Signature Bank’s intervention was led by the United States Government, through regulatory bodies, which raises a series of measures to avoid a wider crisis.

President Joe Biden has closely monitored the situation and raised the possibility of creating new regulation for big banks. After the largest bank failure in the United States since the 2008 financial crisis, Biden is looking to implement another regulation that includes the main banks of North America

If he goes ahead with the proposal, he will have to face a divided Congress, which is unlikely to pass new and tougher rules. Measures taken over the weekend by regulators in conjunction with Biden’s finances include a deposit guarantee placed in both banks, establishing a new mechanism to provide access to emergency funds, and making it easier for banks to borrow from the Federal Reserve in emergencies. The decision brought some relief to Silicon Valley and stock futures rebounded, but the crisis in confidence in the US financial system is proving and fears persist that world markets will remain volatile later in the week. “The American people and American companies can be confident that their bank deposits will be there when they need them,” Biden said in response to the fear of a crisis caused by the sudden collapse of Silicon Valley Bank and noted that in his administration “in the next few days, the American banking system is safe “I am deeply committed to holding the perpetrators of this disaster accountable and continuing our efforts to strengthen the oversight and regulation of large banks so we don’t find ourselves in this situation again,” Biden said. The bank has transferred to a newly created bridge bank and all depositors will have access to their money starting this Monday.JM/AMR NA

Nation World News Desk
Nation World News Desk
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