The White House has yet to complete its response to the banking sector situation

President Joe Biden said on Tuesday his administration had done everything possible to overcome the banking crisis with existing powers, but added that the White House’s response to the problem was “not complete yet.”
“We did what we had to do at the executive level. I’m sure everything is better. The markets seem to be reacting,” Biden told reporters before returning to the White House from North Carolina, where the president was on a working visit.
Asked if his administration has exhausted its efforts to deal with stress in the banking sector, Biden replied, “No, it’s not the end. We are watching very closely. I think my team handled the situation. So far, everything is going well”, suggesting “not to take the lead”.
The president said his administration is also considering making changes to the law in response to the situation in the banking industry, though that may prove difficult in a divided Congress.
“I’m not sure we’ll get any major changes in the legislation. But we’re looking at that as well,” Biden said.
Problems at Silicon Valley Bank and, a few days later, Signature Bank led to a greater loss of investor confidence in the banking sector, sending stocks tumbling and fueling fears of a financial crisis of great magnitude.
The Biden administration moved quickly to protect depositors at both banks, and the Federal Reserve provided additional liquidity to help banks in the sector meet depositor needs.
Biden told reporters last week that the Federal Deposit Insurance Corporation could take steps to guarantee more than $250,000 in deposits if other U.S. banks were in trouble, adding that he expected banks to medium size withstand the current tensions in the sector.
The bailout of Swiss bank Credit Suisse last week and the sale of SVB’s assets to First Citizens Bancshares this week helped restore some calm to markets, but investors remain cautious about new issues lurking in the market. financial system.
Earlier in the day, a spokesman for a US regulator told the Senate that SVB’s board had done a “terrible” job of risk management before its collapse, reflecting criticism from lawmakers who blamed the banking supervisors to ignore risk indicators.