Biden: The banking crisis recedes | Gulf newspaper

US President Joe Biden said the banking crisis that followed the recent collapse of Silicon Valley and Signature banks is receding.

Biden sought to reassure investors and depositors that the global banking system is safe, after financial stocks lost billions of dollars in value since the collapse of the two medium-sized US banks last week. And earlier this week, Biden pledged Americans that their deposits are safe.

When asked if the banking crisis had subsided, Biden told reporters, “Yes.”

California regulators closed the Silicon Valley Bank about a week ago and assigned jurisdiction over the bank to the Federal Deposit Insurance Corporation. It was the largest collapse since Washington Mutual during the 2008 financial crisis.

SVB Financial Group, the bank’s parent company, said on Friday it had filed for Chapter 11 bankruptcy protection restructuring.

Major US banks poured $30 billion in deposits into First Republic the day before, as they swooped in to save the mid-size bank hit by the crisis caused by the collapse of Silicon Valley and Signature.

(Reuters)