Biden Administration Takes Action to Prevent Another Financial Crisis Following Collapse of Silicon Valley Bank

The Biden administration is taking steps to prevent a financial crisis similar to the one in 2008, following the collapse of Silicon Valley Bank last week. The Treasury Department and federal regulators have stated that there is no systemic risk to the banking system as a whole, and have taken measures to head off a run on small or regional US banks.

The collapse of Silicon Valley Bank has raised fears of another financial crisis, as it was weakened by legislation passed in 2018 that was signed into law by President Donald Trump. This legislation relaxed rules designed to strengthen banks in case of an unexpected shock, and was supported by 33 House Democrats and 17 Democratic senators.

The Biden administration is taking steps to protect the economy and to prevent political fallout from the crash of Silicon Valley Bank. US taxpayers will not finance either move, and the administration is racing against the opening of Asian markets to prevent financial contagion.

The Treasury Department and federal regulators have stated that the banking system is resilient and not at risk of a repeat of the 2008 meltdown. However, the collapse of Silicon Valley Bank has raised fears of another financial crisis, and the Biden administration is taking steps to prevent this from happening.