Biden to address US on Silicon Valley Bank collapse – live

Mr Biden said on Monday morning that no losses will be borne by the taxpayers.

“Treasury Secretary Yellen and a team of banking regulators have taken immediate action … all customers … can rest assured … they will be protected, and they’ll have access to their money as of today. That includes small businesses across the country that bank there and need to make payroll, pay their bills and stay open for business – no losses. And this is an important point – no losses will be borne by the taxpayers,” he said.

In a statement on Sunday evening, the president said that he will deliver remarks on how the US will maintain a resilient banking system to protect America’s “historic economic recovery”.

“Over the weekend, and at my direction, the Treasury Secretary and my National Economic Council Director worked diligently with the banking regulators to address problems at Silicon Valley Bank and Signature Bank,” Mr Biden said.

“I am pleased that they reached a prompt solution that protects American workers and small businesses, and keeps our financial system safe. The solution also ensures that taxpayer dollars are not put at risk.”

The president added that he is “firmly committed to holding those responsible for this mess fully accountable”.

California regulators shut down Silicon Valley Bank last Friday, marking the biggest US bank failure since the 2008 global financial crisis.

Shares in First Republic Bank more than halved in premarket trading on Monday amid ongoing concerns about the stability of global finances following the collapse of Silicon Valley Bank.

First Republic on Sunday said it had secured additional financing through JPMorgan Chase & Co (JPM.N), giving it access to a total of $70 billion in funds through various sources.

The lender also said it had an additional borrowing facility from the U.S. Federal Reserve.

Despite the cash infusion, Raymond James double downgraded the bank’s stock to “market perform” from “strong buy”, highlighting the risk of deposit outflows that First Republic faces from panicked large depositors after the bank run at SVB last week.

The bank’s stock was last down 74% at $21.11 on Monday.

“While the bank (SVB) is better positioned for potential deposit outflows on Sunday evening than it may have been earlier in the weekend, if there are net deposit outflows, it will shrink the EPS power of the bank,” Raymond James analyst David Long wrote in the note.

US authorities launched emergency measures on Sunday to shore up confidence in the banking system after the failure of Silicon Valley Bank (SIVB.O) threatened to trigger a broader financial crisis.

First Republic’s shares were leading losses among other regional lenders, with Western Alliance (WAL.N) down over 26% in trading before the bell.

Additional reporting from Reuters

Washington appears to have reached its limit with the buckwild investing and carefree nature of America’s finance and tech sectors and this weekend signalled that a bailout for Silicon Valley Bank, which is now in danger of being unable to ensure all uninsured deposits, is unlikely.

That’s bad news for the companies and individuals with uninsured stakes in the massive institution, which was known for catering to an exclusive clientele in the tech industry. As investors blame a handful of venture capitalists for triggering the bank run, most were hoping that Washington would provide at least some relief in the event that the bank’s assets cannot be bought by another, healthier firm.

Though there was support for such action in the centrist wings of the GOP and Democratic Party alike, the White House’s position was laid out this weekend by Janet Yellen, chair of the Federal Reserve.

Read the full story here:

While the Biden administration has signalled it has no intentions of bailing out the banks, it has introduced emergency measures to protect the US economy and give bank clients access to their funds at no cost to US taxpayers.

Secretary of the Treasury Janet Yellen, Federal Reserve Board Chair Jerome Powell, and FDIC Chairman Martin Gruenberg released a joint statement on Sunday announcing the steps.

“Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system,” they said.

“After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors.

“Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.”

The Federal Reserve Board will also make additional funding available to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.

“The US banking system remains resilient and on a solid foundation, in large part due to reforms that were made after the financial crisis that ensured better safeguards for the banking industry. Those reforms combined with today’s actions demonstrate our commitment to take the necessary steps to ensure that depositors’ savings remain safe,” the statement added.

Those with money at the banks will have full access to it from Monday and no losses will be borne by the taxpayer.

However, the regulators said that there will be no bailouts for the banks and some shareholders and unsecured creditors will lose all of their investments.

Critics looking to assign blame for the collapse of Silicon Valley Bank have found possible culprits in Donald Trump and Republican senators.

Though little known outside of Silicon Valley, the SVB was the leading lender to tech firms and startups before it crumbled on Friday.

SVB announced on Wednesday that it had sold a number of securities at a loss, and that it planned to sell $2.25bn in new shares to help right its balance sheet.

Read the full story here:

The White House has now said that President Joe Biden will deliver remarks “on maintaining a resilient banking system and protecting our historic economic recovery” at 9am ET on Monday.

In a statement on Sunday evening, the president said that he address the American people on Monday morning about the sudden collapse of Silicon Valley Bank, which marked the biggest US bank failure since the 2008 global financial crisis and the second-biggest in American history

“Over the weekend, and at my direction, the Treasury Secretary and my National Economic Council Director worked diligently with the banking regulators to address problems at Silicon Valley Bank and Signature Bank,” he said.

“I am pleased that they reached a prompt solution that protects American workers and small businesses, and keeps our financial system safe. The solution also ensures that taxpayer dollars are not put at risk.

“The American people and American businesses can have confidence that their bank deposits will be there when they need them. I am firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again.”

President Joe Biden is set to address the nation about the sudden collapse of Silicon Valley Bank, which marked the biggest US bank failure since the 2008 global financial crisis and the second-biggest in American history.

In a statement on Sunday evening, the president said that he “will deliver remarks on how we will maintain a resilient banking system to protect our historic economic recovery” in a speech to the American people on Monday morning.

“Over the weekend, and at my direction, the Treasury Secretary and my National Economic Council Director worked diligently with the banking regulators to address problems at Silicon Valley Bank and Signature Bank,” he said.

“I am pleased that they reached a prompt solution that protects American workers and small businesses, and keeps our financial system safe. The solution also ensures that taxpayer dollars are not put at risk.

“The American people and American businesses can have confidence that their bank deposits will be there when they need them. I am firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again.”

Mr Biden will address the nation at 8am ET.

All clients of Silicon Valley Bank will have access to their funds from Monday at no cost to US taxpayers, federal regulators announced as a second bank was shuttered.

Secretary of the Treasury Janet Yellen, Federal Reserve Board Chair Jerome Powell, and FDIC Chairman Martin Gruenberg released a joint statement on Sunday evening outlining what they say are decisive actions to protect the US economy and strengthen public confidence in the banking system.

“After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors,” the statement reads.

Oliver O’Connell reports:

Jeremy Hunt told broadcasters that the UK’s banking system is “resilient” amid concerns sparked by the collapse of Silicon Valley Bank.

The chancellor told broadcasters, following the sale of the banking arm to HSBC: “We always have to watch everything that’s happening everywhere in the world when it comes to financial stability.

“But what I would say is the Bank of England is very clear – the UK banking system is extremely secure, it’s well capitalised.

“And I think we demonstrated that resilience by what was happening over the weekend and the fact that we were able to come up with a solution so quickly.”