President Biden to address banking crisis following collapse of Silicon Valley Bank
PITTSBURGH (KDKA) -- President Biden is expected to address the banking crisis on Monday following the collapse of Silicon Valley Bank on Friday morning.
The collapse came after a stunning 48 hours in which a bank run and capital crisis led to the second-largest failure of a financial institution in U.S. history.
The Biden administration stepped in over the weekend with a plain aimed at halting the fallout from the collapse.
Federal regulators say they're taking emergency measures to make sure depositors of the now-failed bank will have access to all their funds, starting today.
Regulators also say they're taking similar measures for investors of Signature Bank of New York, which collapsed on Sunday.
According to a joint statement released by the Federal Reserve, the Department of the Treasury, and Federal Deposit Insurance Corporation, they're taking actions that 'fully protects all depositors.'
Regulators insist the plan will not include using taxpayer dollars.
Lawmakers on both sides are hopeful they will be acquired.
"I've been working all weekend with our banking regulators to design appropriate policies to address this situation," said U.S Treasury Secretary Janet Yellen. "What I do want to do is emphasize that the American banking system is really safe and well capitalized. It's resilient."
The Federal Reserve announced an emergency lending program late on Sunday intended to prevent a wave of people pulling money out of banks.
President Biden says he's committed to holding those responsible fully accountable.
He's expected to address the situation on Monday morning.