President Joe Biden expressed confidence that the crisis involving US regional banks was easing but said he was not sure legislation addressing the situation would get through Congress.
(Bloomberg) — President Joe Biden expressed confidence that the crisis involving US regional banks was easing but said he was not sure legislation addressing the situation would get through Congress.
“I think we’ve done what we need to do executively,” Biden told reporters Tuesday as he left North Carolina following an event in Durham. “I feel confident that things are settling out. The markets seem to be responding.”
“But I’m not sure whether we get much legislative change,” the president added. “But we’re looking at that as well.”
Biden indicated the administration could take more executive action in the future, if necessary.
“It’s not over yet,” Biden said. “We’re watching it very closely. I think my team has handled it well so far.”
The White House has sought to downplay Wall Street’s anxiety over the recent collapse of a number of US regional banks, including Silicon Valley Bank and Signature Bank, and worries about the prospect of a broader financial downturn.
The president has spoken sparingly on the issue in public, largely punting the matter to Congress, as he seeks to project stability and avoid statements that could further spook markets.
Biden has asked lawmakers to reinstate tougher regulations on banks that were rolled back under former President Donald Trump and to also approve measures enacting tougher penalties on banking executives if mismanagement contributed to the failure of their institutions. But those initiatives face a tough path with Republicans in control of the House.
Regulators have been working to stabilize the sector but there are worries about other troubled banks, such as regional lender First Republic Bank, which has already received a $30 billion lifeline. Regulators are also facing pressure to offer more clarity about guaranteeing uninsured deposits.
Biden has said that if the turmoil persists, the government is in a position to protect deposits.
“What we would is, if we find that it’s more instability than appears, we’d be in a position at the FDIC use the power it has to guarantee those loans above $250,000, like they did already,” Biden said on Friday, referring to the Federal Deposit Insurance Corp.
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