They knowingly took a risk and it didn’t pay off - Biden says Silicon Valley Bank and Signature Bank investors won't get their money back

In three days, two big banks in the US have collapsed at once. Last week the regulator closed Silicon Valley Bank and today Signature Bank was closed. US President Joe Biden spoke after their collapse.

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The White House chief of staff was quick to point out that the US banking system is not under any threat. Taxpayers will not bear losses because of the situation with Silicon Valley Bank and Signature Bank. At the same time, Joe Biden stressed that investors who had invested in these banks would not be able to get their money back.

«They knowingly took a risk and when the risk didn’t pay off, investors lose their money. That’s how capitalism works», - Joe Biden

Timely action by the president's administration has kept the banking system safe. Biden noted that Americans' deposits "will be there when they are needed". The president also promised to fire the heads of Silicon Valley Bank and Signature Bank.

The White House president also plans to take steps to reduce the risks of a similar situation happening again in the future. Joe Biden will be asking the US Congress to strengthen requirements for banks and recalled that part of the criteria for credit institutions was abolished under the presidency of Donald Trump.

Source: ABC