{"id":20455,"date":"2023-05-01T21:06:35","date_gmt":"2023-05-01T21:06:35","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/biden-reassures-public-amid-first-republic-bank-collapse-but-warns-of-national-debt-default-bitcoin-news\/"},"modified":"2023-05-01T21:06:35","modified_gmt":"2023-05-01T21:06:35","slug":"biden-reassures-public-amid-first-republic-bank-collapse-but-warns-of-national-debt-default-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/biden-reassures-public-amid-first-republic-bank-collapse-but-warns-of-national-debt-default-bitcoin-news\/","title":{"rendered":"Biden Reassures Public Amid First Republic Bank Collapse, but Warns of National Debt Default \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Amid the collapse of the second, third, and fourth largest banks in American history, U.S. president Joe Biden reassured the public that the country\u2019s banking system remains sturdy. However, the president also acknowledged the \u201cthreat by the speaker of the House to default on the national debt.\u201d<\/strong><\/p>\n

Biden Expresses Confidence in American Banking System Despite First Republic Bank Collapse<\/h2>\n

Biden\u2019s recent statements were made following California\u2019s financial regulators seizing<\/a> First Republic Bank and placing it under the control of the U.S. Federal Deposit Insurance Corporation (FDIC). After the bank\u2019s seizure, it was then sold to JPMorgan Chase, the largest bank in the United States, which pledged to cover all deposits, including the uninsured.<\/p>\n

Biden expressed his approval<\/a> of the government\u2019s handling of the crisis, saying, regulators have taken action to facilitate the sale of First Republic Bank, making sure that all depositors are protected, and \u201ctaxpayers are not on the hook.\u201d<\/p>\n

\u201cThese actions are going to make sure that the banking system is safe and sound,\u201d Biden stated. \u201cAnd that includes protecting small businesses across the country who need to make payroll for workers and their small businesses.\u201d<\/p>\n

The president\u2019s comments echo those made after the fall of Silicon Valley Bank and Signature Bank. U.S. Treasury secretary Janet Yellen also gave similar reassurances<\/a> when the two banks collapsed, emphasizing the safety and soundness of the banking industry.<\/p>\n

However, some have criticized Yellen\u2019s handling of the crisis, with one contributor to the New York Post, Charles Gasparino, labeling her \u201cclueless\u201d for her failure to prevent the collapse of First Republic Bank<\/a>.<\/p>\n

Yellen was \u201cdrooling happy talk about the banking system, and asking other banks to bail out the zombie. She\u2019s also doubling down on her mistakes that caused this banking crisis in the first place, making it more difficult to escape,\u201d Gasparino said<\/a>.<\/p>\n

Yellen<\/a> has sounded an alarm<\/a> about the U.S. defaulting on its debts, a concern that Biden echoed during his press conference on First Republic\u2019s downfall. On Monday, the president emphasized the need to ensure the continued reliance on the economy and financial system, calling for the \u201cthreat by the speaker of the House to default on the national debt\u201d to be taken off the table.<\/p>\n

Republican lawmakers, however, have stood firm on the country\u2019s debt limit, demanding repeals<\/a> of the Inflation Reduction Act<\/a> before they agree to any increase. The potential default on the country\u2019s debt by the end of the summer has heightened fears of financial instability and a prolonged recession in the United States.<\/p>\n

In a note shared with Bitcoin.com News, Ruslan Lienkha, the chief of markets at Youhodler<\/a>, an international fintech platform based in Switzerland, expounded on the impact of First Republic\u2019s failure on the stability of the U.S. banking sector. Lienkha voiced apprehension that the Fed\u2019s rate hikes that have taken place in the past year have been particularly \u201cpainful for small and mid-sized banks in the United States.\u201d<\/p>\n

\u201cWhich means the collapse of First Republic Bank is likely not the last one,\u201d Lienkha opined. \u201cA potential bankruptcy of the bank could trigger a broader financial crisis in the country, affecting the real estate market and many other related industries\u2014which could have massive implications for the world economy.\u201d<\/p>\n

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Banking Industry<\/a>, collapse<\/a>, Default<\/a>, economic stability<\/a>, FDIC<\/a>, Financial Crisis<\/a>, financial industry<\/a>, First Republic Bank<\/a>, Janet Yellen<\/a>, Joe Biden<\/a>, JPMorgan Chase<\/a>, National Debt<\/a>, president joe biden<\/a>, Republican lawmakers<\/a>, Ruslan Lienkha<\/a>, U.S. President Joe Biden<\/a>, YouHodler<\/a><\/div>\n<\/div>\n

What do you think the government will do to try and prevent another banking crisis and a potential default on the national debt in the future? Share your thoughts in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 7,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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