Biden promises stability after 20 banks hit by crisis, 2 historic failures


President Joe Biden is promising stability and accountability after two of the largest bank failures in history, with another 20 banks hit by crisis. Biden directs Treasury, Fed and FDIC to take action, and more in Democrat politics.

Biden weighs in after 2 of the largest bank failures in US history and 20 banks hit by crisis

At least 20 regional banks in the United States were hit with trading halts, as shares of numerous banks tumbled on Monday, the Daily Mail reported.

Besides stocks of regional banks falling, a number of America’s largest banks also saw share values fall, including Wells Fargo, Bank of America, Citigroup, Chase, J.P. Morgan, Charles Schwab, Morgan Stanley, and Goldman Sachs.

Regulators seized New York regional bank Signature Bank (SBNY) on Monday. Signature is the third-largest bank ever to fail in US history, behind Silicon Valley Bank – which failed two days earlier – and Washington Mutual in 2008, Yahoo Finance reported.

With fingers pointing in many directions, President Biden spoke on Monday to reassure Americans that those held accountable would be made responsible and that the US banking system was safe, Politico reported.

“Americans can have confidence that the banking system is safe,” Biden said in a speech on Monday morning. “Your deposits will be there when you need them.”

Biden promises accountability over bank failures

On Sunday, President Joe Biden said that US Treasury Secretary Janet Yellen and his top economic adviser Lael Brainard worked with financial regulators at his direction to ensure households and businesses affected by the Silicon Valley Bank and Signature Bank failures would be able to access their deposits.

“I am pleased that they reached a prompt solution that protects American workers and small businesses, and keeps our financial system safe,” Biden said in a statement. “The solution also ensures that taxpayer dollars are not put at risk.”

Biden promised to hold those responsible accountable, CNN reported.

“I am firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again,” Biden added.

Biden directs Treasury, Fed, and FDIC to shore up banking industry

At President Biden’s direction on Sunday, a trio of groups headed by Treasury Secretary Janet Yellen, Federal Reserve Board Chair Jerome Powell, and FDIC Chairman Martin Gruenberg announced that no losses from the two bank closures by regulators would be borne by the taxpayer, The Hill reported.

“The U.S. banking system remains resilient and on a solid foundation, in large part due to reforms that were made after the financial crisis that ensured better safeguards for the banking industry,” the trio wrote in a joint statement. “Those reforms combined with today’s actions demonstrate our commitment to take the necessary steps to ensure that depositors’ savings remain safe.”

McCarthy and Jeffries forge bipartisan working relationship

Former Speaker of the House Nancy Pelosi (D-CA) reportedly had no relationship with current speaker Kevin McCarthy (R-CA), having once called him a “moron.” However, House Minority Leader Hakeem Jeffries (D-N.Y.) and McCarthy are reportedly forging a working relationship and are frequently seen huddling off the House floor, The Hill reported.

Additionally, other top Republicans have publicly thanked Jeffries for working with them on different issues, with other Democrats in the chamber calling the relationship “very positive,” and “very professional,” adding that the working relationship between the two leaders is “good for Congress in the country.”

Absence of Feinstein and Federman leave Democrats with fragile majority

In recent weeks, the absence of senators Dianne Feinstein (D-CA) and John Federman (D-PA) has created a 49-49 split in the chamber, leaving Democrats with a slim and fragile majority, The Hill reports. As a result, lawmakers have mainly focused on votes they know have bipartisan support. However, the situation is causing problems at the committee level. Federman has been absent after checking himself into the hospital for clinical depression, while Feinstein is recovering at home from shingles.