In the wake of the failure of a number of banks over the past several days, President Joe Biden reportedly congratulated himself on the back first thing Monday morning, declaring that the rapid action allegedly taken by his administration had stabilized the financial sector.
The Silicon Valley Bank suffered heavy losses from the liquidation of a $21 billion bond portfolio, which raised concerns among venture capital firms and startups with ties to the company about the safety of their assets.
“Your deposits will be there when you need them. Small businesses across the country that deposit accounts at these banks can breathe easier knowing they’ll be able to pay their workers and pay their bills. And their hardworking employees can breathe easier as well.” Biden exclaimed.
Biden’s remarks come after the Silicon Valley Bank announced on Wednesday that it would be selling shares for a total of $1.75 billion. The announcement came after the bank suffered heavy losses.
The Silicon Valley Bank (SVB), which is the largest bank in the Silicon Valley region of California and the sixteenth-largest bank in the United States, provides loans to roughly half of the venture-backed technology and healthcare enterprises.
The California Department of Financial Protection and Innovation is responsible for SVB’s closure, according to the Federal Deposit Insurance Corporation (FDIC), which announced the news on Friday.
In a statement released on Sunday, Treasury Secretary Janet Yellen and Chairman of the Federal Reserve Board Jerome H. Powell revealed that a second bank in the state of New York was shut down on Sunday by state regulators.