The U.S. banking system is “safe and sound” after federal regulators facilitated the sale of the distressed First Republic Bank, President Joe Biden confirmed.
First Republic became the second-largest bank failure in U.S. history and the third midsize institution to collapse in less than two months.
Speaking from the White House on May 1 to mark National Small Business Week, Biden announced that all First Republic insured and uninsured depositors would be protected, and shareholders would lose their investments. Taxpayers would not be on the hook, Biden stated.
“These actions are going to make sure that the banking system is safe and sound,” the president said. “And that includes protecting small businesses across the country who need to make payroll for workers and their small businesses.”…