Joe Biden calmed an alarmed nation over SVBcollapse vowing to protect depositors’ monies, fire the bank management, but declared investors would not be protected as they knew the risks they ran
“This is capitalism for you,” he said
Biden told a nationwide audience that the US government is taking steps to prevent an escalating financial crisis from the Californian bank collapse
He said that “no losses will be borne by the taxpayers. Instead, the money will come from the fees that banks pay into the Deposit Insurance Fund”
“The management of these banks will be fired. If the bank is taken over by FDIC, the people running the bank should not work there anymore,” Biden said, according to multiple media reports
The US President said that “investors in the banks will not be protected”
“They knowingly took a risk. And when the risk didn’t pay off, investors lose their money. That’s how capitalism works,” he said
This is the worst financial crisis to hit the US since the failure of the Washington Mutual Fund in 2008 during the start of the US financial meltdown