Biden says banking system strong after 2 collapse

President Joe Biden said Monday that the government is investigating the failures of two American banks over the weekend.

California-based Silicon Valley Bank collapsed Friday and Signature Bank failed on Sunday in New York. They were the second and third largest bank collapses in U.S. history.

Federal agencies have taken control of both banks’ assets and officials say all depositors will have access to their money. Biden said taxpayer funds will not be used to bail out either bank.

What else is being done to mitigate the collapses? The Federal Reserve on Sunday introduced an emergency bank lending program meant to avoid a wave of bank runs.

Biden on Monday said he will ask Congress and regulators to strengthen oversight and regulations for banks. 

This story originally appeared in WORLD. © 2023, reprinted with permission. All rights reserved.