Biden says 'banks are in pretty good shape' even as banking crisis unfolds: 'I don't see anything...it's about to explode'
Even though a semblance of normalcy returned after the US government intervened to stem the regional bank's fallout and the Swiss central bank bailed out Credit Suisse AG CS, fears have resurfaced. surfaced on Friday as investors sensed trouble at German banking giant Deutsche Bank AG DB.
President Joe Biden, however, tried to calm the storm with reassuring comments during a press conference in Ottawa, Canada.
What happened: "The banks are in pretty good shape," the president told the media, in response to a question about his confidence in the banking crisis being under control and the actions his administration would take if there was a contagion.
"I don't see anything on the horizon that is about to explode," he added.
The president also noted that recent events in Europe were not direct consequences of what happened in the United States. If there were to be more instability than there is now, the government would be able to have the Federal Deposit Insurance Corporation guarantee loans over $250,000, as it has done in the past. he said.
"And so I think it's going to take a little while for things to calm down. But I don't see anything on the horizon that's about to explode," said declared the president.
Also read: How to invest in startups
While acknowledging the unease over the banking crisis, the President said mid-sized banks must be able to survive and they must be able to do so.
Biden also said people's savings were safe and the American taxpayer wouldn't have to pay a penny to bail out the banks.
Why it matters: On Wednesday, Treasury Secretary Janet Yellen spooked the market by saying that system-wide insurance for deposits over $250,000 would not be considered. And this despite analysts and investors calling for immediate action.
In other news, reflecting confidence in averting the crisis, SPDR S&P Regional Banking ETF KRE set Friday's session up 3.03% at 43.52 $, according to data from Benzinga Pro. The exchange-traded fund recovered from a 2.3% decline during the day.
Read next: S&P 500 volatility continues as investors analyze latest banking stocks
Photo: Shutterstock
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Even though a semblance of normalcy returned after the US government intervened to stem the regional bank's fallout and the Swiss central bank bailed out Credit Suisse AG CS, fears have resurfaced. surfaced on Friday as investors sensed trouble at German banking giant Deutsche Bank AG DB.
President Joe Biden, however, tried to calm the storm with reassuring comments during a press conference in Ottawa, Canada.
What happened: "The banks are in pretty good shape," the president told the media, in response to a question about his confidence in the banking crisis being under control and the actions his administration would take if there was a contagion.
"I don't see anything on the horizon that is about to explode," he added.
The president also noted that recent events in Europe were not direct consequences of what happened in the United States. If there were to be more instability than there is now, the government would be able to have the Federal Deposit Insurance Corporation guarantee loans over $250,000, as it has done in the past. he said.
"And so I think it's going to take a little while for things to calm down. But I don't see anything on the horizon that's about to explode," said declared the president.
Also read: How to invest in startups
While acknowledging the unease over the banking crisis, the President said mid-sized banks must be able to survive and they must be able to do so.
Biden also said people's savings were safe and the American taxpayer wouldn't have to pay a penny to bail out the banks.
Why it matters: On Wednesday, Treasury Secretary Janet Yellen spooked the market by saying that system-wide insurance for deposits over $250,000 would not be considered. And this despite analysts and investors calling for immediate action.
In other news, reflecting confidence in averting the crisis, SPDR S&P Regional Banking ETF KRE set Friday's session up 3.03% at 43.52 $, according to data from Benzinga Pro. The exchange-traded fund recovered from a 2.3% decline during the day.
Read next: S&P 500 volatility continues as investors analyze latest banking stocks
Photo: Shutterstock
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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