Newspaper “Kommersant” WroteThe bankruptcy of the American bank Silicon Valley and its group on March 13 led to significant shifts in US domestic politics. President Joe Biden later pledged to take all necessary measures to resolve the banking crisis that arose against the backdrop of the SVB’s bankruptcy.
The president of the United States also promised to tighten banking regulation, which was partially weakened during Donald Trump’s presidency. Among other things, we are talking about lowering the threshold to classify a bank as systemically important (which means tighter control) from $50 billion to $250 billion. These changes were approved in May 2018. Biden’s appeal was made against the background of falling shares of not only American but also European banks.
As stated in the broadcast, on Friday the SVB came under the control of the Federal Deposit Insurance Corporation. The bank actually went bankrupt within two days. US President Joe Biden has vowed to punish anyone involved in the bankruptcy of the SVB. Biden also emphasized that the credit institution will receive the funds of all its depositors. The article states that in order to avoid a global panic, bank depositors and other countries will lose nothing “as soon as possible”, but that their money will be slightly more expensive all over the world. The article adds that the issue was resolved by the US authorities in just a few hours.
In his speech, Biden noted that US citizens will not experience losses due to the situations with Silicon Valley and Signature Bank.