Biden Administration to Draw from Deposit Insurance Fund to Backfill Depositors of Failed Silicon Valley and Signature Banks, No Losses to Taxpayers

President Joe Biden announced Monday that the government’s efforts to shore up depositors of the failed Silicon Valley Bank and Signature Bank will not be funded by American taxpayers.

Biden said that the Biden administration will draw from the Deposit Insurance Fund to backfill customers’ deposits, reiterating comments from the heads of Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation that this relief plan would not be funded by American taxpayers.

“No losses will be — and this is an important point — no losses will be borne by the taxpayers; let me repeat that, no losses will be borne by the taxpayer,” Biden said.

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