President Joe Biden tries to reassure Americans after bank failures: “Taxpayers won’t pay for losses”

The tech bank Silicon Valley Bank (SVB) got into trouble late last week. Rising interest had made refinancing of existing loans, which had been taken out at low rates, too expensive and difficult. Because customers tried to withdraw their deposits en masse, the California regulator decided to close the bank. The state of California then took over the bank and SVB’s share was suspended from the stock exchange.

Last night, a second bank, the Signature Bank from New York, bankrupt. That is the 20th largest bank in the United States, with assets estimated by the Federal Reserve (The Fed) at $ 110 billion at the end of 2022. The same arrangement as for Silicon Valley Bank will also apply to Signature Bank.