The recent issues facing the US banking sector, particularly liquidity troubles at the First Republic Bank, have predictably sparked fears of a financial meltdown similar to the crash of 2008. However, despite fearmongering in the media, US banks could be in a much better shape than reports suggest.
At a White House press briefing, the Biden administration’s press secretary Karine Jean-Pierre dismissed the reports of a possible collapse of the sector. “Overall, the banking system is far more resilient and on better foundation than before the financial crisis. Again, this is not 2008,” she stated.
In an earlier address to the nation, President Biden said that the US bank system was secure. “No losses will be borne by the taxpayers,” Biden pledged, adding that the senior management of the beleaguered lenders would be fired and held accountable.
