collapse, the u.s. treasury department says they are seeing positive signs that deposit outflows has slowed. and monday was a volatile day on wall street as shares of dozens of regional banks plunged to record lows. but president biden is assuring americans that he will to whatever is needed to protect the u.s. banking system. america is going to have confidence that the banking system is safe. your deposits will be there when you need them. let me also assure you, we will not stop at this, we ll do whatever is needed. investors in the banks will not be protected. they knowingly took a risk and when the risk didn t pay off, investors lose their money. that is how capitalism works. phil mattingly has the latest
no losses and this is an important point. no losses will be born by the taxpayers. let me repeat that. no losses will be born by the taxpayers. instead, the money will come from the fees that banks pay into the deposit insurance fund. because of the actions of that because of the actions that our regulators have already taken, every american should feel confident that their deposits will be there if and when they need them. second, the management of these banks will be fired. if the bank is taken over by fdic, the people running the bank should not work there anymore. third, investors in the banks will not be protected. they knowingly took a risk and when the risk didn t pay off, investors lose their money. that s how capitalism works. and fourth, there are important questions of how these banks got into this circumstance in the first place. we must get the full accounting of what happened and why those responsible can be held
taken every american should feel confident that their deposits will be there if and when they need them. second, the management of these banks will be fired. if the bank is taken over by fdic the people running the bank should not work there anymore. third, investors in the banks will not be protected. they knowingly took a risk and when the risk didn t pay off, investors lose their money. that s how capitalism works. fourth, important questions of how these banks got into the circumstance in the first place. we must get the full accounting of what happened and why those responsible can be held accountable. my administration no one is above the law. and finally, must reduce the risks of this happening again. during the obama/biden administration we put in place tough requirements on banks like silicon valley bank and signature bank including the dodd-frank law to make sure the
funds to be creating a backstop, and emergency lending service for those banks on a liquidity squeeze and none of that footed by the taxpayers and also the investors the at silicon valley will not be squeezed. and so he also said to hold those accountable for what happened. listen. second, those will be fired if the bank is taken over by fdic, the people who ran the bank should not be working there anymore. third, the investors of the bank will not be protected, because they knowingly took a risk, and they lose their money, and this is how capitalism works. and also, the circumstances is
from the fees that banks pay into the deposit insurance fund. the management of these banks will be fired. investors in the banks will not be protected. they knowingly took a risk, and when the risk didn t pay off, investors lose their money. that s how capitalism works. recwe re covering this from white house and capitol hill. matt, let s start with how we got here. we had a perform storm of things that went wrong and conspired to set off these second biggest bank failure in american history. so let s look at what happened. remember, silicon valley bank, it was enormously exposed to the tech sector, and that is one of the parts of economy that is hurting the most right now. now in order to raise cash, they have to sell off some bonds, and they have mortgage-backed securities and treasury bonds, all of those securities, they lost value as the federal reserve raised interest rates.