With the US banking world reeling after several banks ran into trouble, Biden said that “no one is above the law” and that it should be easier for regulators to penalize bankers financially.
The American bank Silicon Valley Bank (SVB) went under last week after a bank run, in which customers wanted to withdraw their capital en masse. In the end, the bank turned out not to be able to get enough cash to meet the requests and was closed by the authorities. The federal public service FDIC, which provides insurance to customers, was appointed as administrator.
Authorities also intervened on Sunday at industry peer Signature Bank, which also went bankrupt, by closing the New York-based crypto bank. The customers of both banks received all their balances back. Normally, customer deposits with US banks up to $250,000 are guaranteed to be returned.