World leaders rally to reassure markets, public on US banking crisis

President Joe Biden has assured US taxpayers that they will not have to pay for losses in the banking sector, after French and German authorities said that recent collapse of several US banks pose no danger to European financial institutions.

The collapse of Silicon Valley Bank (SVB) and the failure of Signature Bank have created a wave of uncertainty in global financial circles.

On Monday, US President Joe Biden said that US taxpayers will not be asked to pay for the rescue of depositors at the failed SVB bank, assuring Americans that the crisis was “under control”.

While the government will guarantee that SVB depositors get their money back, “no losses will be borne by the taxpayers,” Biden said. “The money will come from the fees that banks pay into deposit insurance.”

Meanwhile, European equities have tipped deep into the red. Bank shares in Italy and Switzerland have fallen particularly hard. Frankfurt and Paris stock markets have dropped by about three percent, while Milan dived almost five percent at one stage and Zurich shed 1.7 percent.

Source: rfi