Joe Biden defends his response to banking turmoil: ‘Damn good job’

President Biden is defending his administration’s response to the banking sector turmoil and has assured Americans that the financial system remains stable and is not “about to explode.”

Speaking in Ottawa at a joint press conference with Canadian Prime Minister Justin Trudeau, Biden said his administration’s actions were keeping the banking system secure.

“I think we did a damn good job,” Biden said in response to a reporter’s question. “People’s savings are secure and even those over $250,000 [limit] from the FDIC are guaranteed and the American taxpayer will not have to pay a penny. The banks are in fairly good condition.

Mr Biden’s remarks come two weeks after the stunning collapse of Silicon Valley Bank and Signature Bank raised fears of an impending economic crisis.

The Federal Deposit Insurance Corp. covers bank deposits up to $250,000 in the event of the institution’s collapse. However, Mr. Biden this month ordered the FDIC to go over that amount and cover all deposits at Signature and Silicon Valley banks.

While Mr Biden warned that it will take time for things to calm down, he said there was no indication of economic calamity triggered by the bank failures.

“I don’t see anything on the horizon that’s about to explode,” Biden said.

In the aftermath of the two bank collapses, other financial institutions stepped in to save First Republic Bank from bankruptcy. A group of 11 banks have deposited $30 billion in the beleaguered mid-tier lender in a bid to prop it up.

Anxiety continues to grow over the health and safety of the country’s banking system. Shares of smaller regional banks were hit hard as investors feared they could also tumble, although there were no indications of system-wide concerns.