the federal government is now stepping in to calm financial panic over the failure of two u.s. banks. the biden administration announcing it will extend a federal backstop to all the banks deposits. treasury officials push back on the idea this was a bailout saying the burden is not borne by the taxpayers. we ll hear from president biden moments from now. water everywhere, causing chaos across central california. warnings of intense sustained flooding in the days ahead. it s unimaginable. folks, we are not done yet. former vice president mike pence telling a crowd in washington that history will judge donald trump for his actions on january 6. probably not a message that will be terribly popular with
signature this is a different scenario that we re in here. there is still very, very careful about not wanting to call this a bailout. they made money on the end. it was ugly. the fed facility is really important to note. so this is the fed giving banks, banks who want it, a one-year loan. the collateral is all of these bonds that are worth less today. so it s like giving them really good deal. and there you have it. there is a bailout. i think you made a important point. underlying this is a question of whether this was an actual systemic risk that required the federal government to come in here. this is one bank, bank dozen fail. this is concentrated in one area. very wealthy enclaves.
ease panic and stop the crisis from snow balling. we ll carry that for you live. > silicon valley bank collapsed on friday. regulators shut down signature bank based in new york. they say it was on the brink of collapse and a threat to the entire banking system. feds are now taking extraordinary action. they re guaranteeing that customers of both banks will be able to get their money back starting to day. and they re offering emergency loans to other banks to keep them afloat. i m going to go straight to cnn s white house correspondent for the latest. good morning, m.j. what do we expect to hear from the president when he speaks shortly? good morning, don. it is clear that president biden s message this morning is going to be there is no need for panic. we saw over the weekend the administration working furiously to try to contain the fallout and that culminated in the announcement that was dramatic that said all depositors will have access to all of their funds starting to day.
by banks. to really protect all the depositors in america. if there is really a run, taxpayers would back that. that s going to banks. they can sell or they can give their assets that have lost money to the fed and they get a loan. they get a cheap loan. but they couldn t get otherwise. so taxpayers are certainly backing up these very wealthy investors who have made mistakes. it s not just affecting people in sill con silicon vall. what we heard is the firms are not being bailed out. depositors are being protected. you re saying they re wrong. right. they are that s not accurate. i agree with you about payrolls.
decision. thank you so much for joining us. lots to discuss. of course, this is top of mind this morning. what happened to the biden administration call with members of congress about the banking fail? what happened? we learned about the signature bank failure also added to the silicon valley bank:and assurances were made, obviously, for fdic, $250,000 secured for everyone. that s already a given. but the administration indicated that beyond that, those who had deposits beyond the $250,000 would also be kept whole but not at taxpayers expense. this is urgent from small businesses that need to make payroll, et cetera. the message, i think, is no widespread panic necessary. they re not worried about other banks? i think that there might be a handful of other banks out there. but i don t know for sure.