White House Whimpers : American banking sector situation not a repeat of 2008 crisis
During the 2008 crisis, the US Administration provided colossal financial aid to private US banks from the federal budget
The current situation in the US banking sector is not an effectively repeat of the 2008 financial crisis, White House Spokeswoman Karine Jean-Pierre whimpered on Monday.
“Overall, the banking system is far more resilient and on better foundation than before the financial crisis. Again, this is not 2008,” the spokeswoman said Monday.
She also rejected the position, expressed by a number of Republican figures, who called the US government’s actions regarding the bankruptcy of the Silicon Valley Bank and the Signature Bank as an effective rescue of these banks at the cost of taxpayers.
“No, this is not a bailout,” the spokeswoman said.
She reiterated Biden’s words that the two banks receive aid from payments the banks made to state regulators, not taxpayer money.
“This is very different than what we saw in 2008,” Jean-Pierre believes.
During the 2008 crisis, the US Administration provided colossal financial aid to private US banks from the federal budget.
The spokeswoman was unable to specify which measures the US government will take in the current situation.
“The Treasury Department remains in close touch with regulators to work together on next steps,” she underscored.
She was also unable to explain how exactly President Biden intends to ensure stricter banking supervision in the US.
“We’re going to actively have those conversations, work on this, and have conversations with experts and regulators,” she promised.
