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Joe Biden Says US Banks Are In 'Pretty Good Shape': Report As per the report, Biden last week expressed confidence the worst of the turmoil roiling the U.S. banking system had passed

By Teena Jose

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US President Joe Biden, on Friday, has said that American banks are in 'pretty good shape' after recent turmoil in the financial sector that dragged down stocks, according to a Bloomberg report.

In a news conference during a visit to Ottawa alongside Canadian Prime Minister Justin Trudeau, Biden said that, "I think we've done a pretty damn good job. People's savings are secure. I think it's going to take a little while for things to just calm down, but I don't see anything that's on the horizon that's about to explode."

As per the report, in response to a question from a reporter about anxiety in financial markets, Biden replied, "You ever know a Wall Street not in consternation? And added that, if the banking turmoil persisted the government is in a position to protect deposits.

Referring to the Federal Deposit Insurance Corp, Biden further reportedly said that, "What we would do is, if we find that it's more instability than appears, we'd be in a position at the FDIC to use the power it has to guarantee those loans above $250,000, like they did already."

Biden last week expressed confidence the worst of the turmoil roiling the U.S. banking system had passed. And he has publicly punted the issue to Congress, encouraging lawmakers to approve tougher bank regulations and punishments for executives at banks that fail, including strengthening powers to claw back bonuses, the report added.

As per previous media reports, Federal regulators shut down Silicon Valley Bank (SVB) March 10 after its stock price collapsed and customers began a bank run following the financial institution's disclosure of a $1.8 billion loss on asset sales due to high interest rates.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
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