Tipsheet

After Another Bank Collapse, Biden Claims the Banking System Is 'Safe'

Katie Pavlich
Katie Pavlich  |  May 01, 2023 2:30 PM

UPDATE: White House Press Secretary Karine Jean-Pierre was asked about the potential for future bank problems during the briefing Monday afternoon and didn't provide many answer. 


***Original post***

Speaking briefly to reporters at the White House Monday after a small business event in the Rose Garden, President Joe Biden was asked about the collapse of First Republic Bank and an abrupt rescue of the institution by JPMorgan. Biden claimed taxpayers will not foot the bill for the First Republic failure, the same claim that was made after Silicon Valley Bank collapsed in March.  

"Regulators have taken action to facilitate the sale of First Republic Bank and ensure that all depositors are protected, and the taxpayers are not on the hook," Biden said. "These actions are going to make sure that the banking system is safe and sound and that includes protecting small businesses across the country who need to make payroll for workers."

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"Let me be very clear, while depositors are being protected, shareholders are losing their investments and critically tax payers are not on the hook, as I said earlier," he continued. 

The Silicon Valley Bank collapse was the second-largest failure in U.S. history. First Republic is the third. 

Meanwhile, the Biden administration is fueling this crisis and the government bureaucrats in charge have no clue about when it will end.