(AmericanProsperity.com) – US President Joe Biden said during a Monday small business event at the White House that American taxpayers won’t suffer any type of risk for the collapse of the First Republic Bank, which regulators decided to seize and sell to JPMorgan Chase on Monday morning.
The US commander-in-chief said during a speech at the event that every single depositor is “being protected” and shareholders are losing money, but taxpayers in the United States are not “the ones who are on the hook.” People on social media took these comments with skepticism as many claim there have been previous cases where this situation has happened.
The Federal Deposit Insurance Corporation brokered the deal for JPMorgan to take over the First Republic Bank, including each of its assets and deposits. The FDIC announced that each of the 84 First Republic Bank branches will be reopened as JPMorgan branches, pointing out they will both cover the costs of losses on commercial and residential loans that the First Republic Bank issued.
During the speech, President Biden added that these actions will guarantee that the US banking system is fully safe. He said this includes the protection of every single small business across the nation that needs to make payroll for employees “and their small businesses.”
As reported by different media outlets, First Republic is the third bank to collapse since March. Many experts predicted this could happen anytime soon, considering that this bank has been struggling with the severe collapses of the Signature Bank and the Silicon Valley Bank, which were taken over by California regulators.
In his speech, President Biden added that the country needs more severe supervision and regulations to prevent these collapses from happening in the future. He said he called on the US Congress to provide regulators with the proper tools to take the necessary actions and called on regulators to intensify the supervision and regulation of regional and large banks.
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