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WASHINGTON. – US President Joe Biden has sought to dispel fears over a potential financial crisis following the rapid collapse of two major United States banks, saying customers would be protected and can trust that the country’s banking system is “safe”.

During a brief news conference at the White House yesterday, Biden said he would seek to hold those responsible to account and push for better oversight and regulation of larger banks, while he also promised that “no losses would be borne by the taxpayers”.

US regulators closed the Silicon Valley Bank (SVB) on Friday after it experienced a traditional bank run, where depositors rushed to withdraw their funds all at once – the second largest bank failure in the country’s history behind only the 2008 failure of Washington Mutual. 

But the financial bloodletting was swift as New York-based Signature Bank also failed.

On Monday morning, Biden told reporters that “all customers who had deposits in these banks can rest assured – rest assured – they’ll be protected and they’ll have access to their money as of today”.

This includes small businesses across the US, he said.

“Americans can have confidence that the banking system is safe. Your deposits will be there when you need them,” Biden said. – Al Jazeera