US President Joe Biden reassures banking system; says 'safe' despite contagion fears

Updated : Mar 16, 2023 09:52
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Editorji News Desk

President Joe Biden sought to reassure Americans over the country's financial system Monday as more US banks and leading European lenders were hammered amid contagion worries.

Silicon Valley Bank -- a key lender to startups across the United States since the 1980s -- collapsed after a sudden run on deposits, prompting regulators to seize control Friday.

On Sunday night, US federal authorities stepped in to protect all depositors at SVB, and regulators took over a second troubled lender.

"Americans can have confidence that the banking system is safe," Biden said in a brief White House address. "Your deposits will be there when you need them."

But there were immediate signs of pressure at additional US lenders.

San Francisco-based First Republic Bank shares plunged around 62 percent, while Ohio-headquartered KeyCorp lost 27 percent and Zion Bancorporation lost 26 percent.

joe biden

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