Joe Biden made a futile attempt at calming the markets, insisting the “banking system is safe” while a billionaire hedge fund boss warned of an impending economic meltdown.
“Americans can rest assured that our banking system is safe,” Biden said during his address on Monday.
Biden said investors in the now collapsed banks won’t be protected, saying they “knowingly took a risk, and when the risk didn’t pay off, investors lose their money.”
But Biden ignored questions about a possible ripple effect or how the collapse happened.
Meanwhile, billionaire Hedge Fund boss Bill Ackman demanded Biden guarantee ALL banking deposits, warning of a complete economic meltdown.
“Our economy will not function effectively without our community and regional banking system. Therefore, the Federal Deposit Insurance Corporation needs to explicitly guarantee all deposits now. Hours matter,” Ackman warned.
‘War Room’ podcast host Steve Bannon responded to Ackman’s demands on Friday.
Bannon weighed in on the proposed billions in bailouts.
“The most powerful oligarchs- who caused the run on this bank – and are the beneficiaries of all of the financial, quite frankly, crimes of this bank have the gall to come to you for a bailout,” Bannon said.
Western Alliance was one of the worst affected regional banks, which saw its stocks plummet by 75 percent as the markets opened, Market Insider reported.
First Republic Bank’s price took a nosedive by two-thirds, and PacWest dropped by 35 percent.
Treasury Secretary Janet Yellen and National Economic Council Director are reportedly addressing the problems at SVD and Signature Bank.
“I’m pleased they reached a solution that protects workers, small businesses, taxpayers, and our financial system,” Biden said.
Biden also declared he would take action against “those responsible for the mess.”
“I’m 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,” he tweeted.