The banking crisis set off by the swift collapse of Silicon Valley Bank has exposed a sharp disconnect between Washington and Wall Street. Bankers want faster, more aggressive action to shore up the industry, while the Biden White House and regulators argue they've done what they can within the limits of the law.
SVB logo and decreasing stock graph are seen in this illustration taken March 19, 2023. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo
Some critics are asking whether the Biden administration could have contained the crisis with aggressive actions at the start. Some officials in the Biden administration, guided by the public rebuke of bailouts in the 2008 financial crisis, say they will protect depositors and the system, but do not intend to rescue individual banks or put taxpayers at risk.
The FDIC did not begin talking to potential buyers or allow banks to review SVB's finances until later on Saturday, according to two industry sources.Senate Banking Committee Chairman Sherrod Brown, an Ohio Democrat, said his conversations with top U.S. regulators suggested there had been a chance for a private buyer but "apparently, the due diligence meant that either they backed out or the FDIC didn’t think they were capable.
“We will use tools we have to give the American people confidence that their deposits will be safe," White House press secretary Karine Jean-Pierre said Thursday.
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