The US banking crisis is not over yet: Joe Biden
The US banking crisis is not over yet: Joe Biden
The President of the United States-Joe Biden-believes that the turbulence that have recently shaked the banking sector have not yet completely disappeared. Therefore, his cabinet is willing to enforce further changes in the law in order to cope with possible problems in the future.
Two of the leading American banks-the Silicon Valley Bank (SVB) and the Signature Bank-had serious operational problems and were closed by the supervisory authorities at the beginning of this month. Large institutes outside the USA, including Credit Suisse and Deutsche Bank, also revealed liquidity problems.
- President Biden praised of his government for adequate measures during the banking crisis, the fears before another gigantic financial crash similar to that of 2008 triggered:
"We did what we have to do as executive. I am confident that things regulate. The markets seem to react to it."
- Nevertheless, the chairman sees the chance of further problems in the banking industry and said the government was watching things:
"No, it is not over. We are watching very well. I think my team has mastered it very well so far. And instead of taking it up here, I think we let things run as they are."
- The US guards have signed Bank and SVB this month due to concerns about their solvency. Both institutions looked after numerous cryptocurrency customers.
- bidens first speech after the collapse came in the middle of the month when he described The US banking system as "safe".
- Despite his calming statement, some American banks still tremble. First Republic Bank - one of the 15 largest in the country - has recorded a decline in its shares by almost 90 %in the last 30 days.
- The Credit Suisse, based in Switzerland, has also had significant problems recently and has been adopted by the largest bank in Switzerland-the UBS Group-for over $ 3 billion.
- Bitcoin reacted positively to the deal, Wozend For the first time since June 2022 over $ 28,500.
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