Joe Biden Comes to the Rescue of Trump's 'Go-to' Bank After SVB Collapse
- Signature Bank was a "go-to" lender for Donald Trump, financing his Florida golf course and providing Trump and his business with checking accounts.
- Regulators announced the bank was being seized on Sunday, following the collapse of California-based Silicon Valley Bank.
- President Joe Biden has directed officials to work with banking regulators to address the problems at SVB and Signature Bank.
- The U.S. Treasury Department announced that all SVB and Signature Bank clients would be able to access their money.
The Biden administration has come to the rescue of former president Donald Trump's "go-to" lender amid the turmoil following the failure of the California-based Silicon Valley Bank (SVB).
Regulators rushed to close SVB on Friday when it experienced a traditional bank run, as depositors rushed to withdraw their funds all at once.
Regulators then announced that New York-based Signature Bank had also failed and was being seized on Sunday.
Signature Bank became a "go-to" lender for Trump and his family after a relationship was initiated by Trump's former lawyer, Michael Cohen, The New York Times reported in 2018.
The bank helped finance the golf course at the Trump International Golf Club in Florida and provided the former president and his business with checking accounts, according to the Times.
Trump's daughter, Ivanka Trump, was appointed to the bank's board of directors in 2011, a role she carried out despite the bank lending her family money. She reportedly stepped down from the position in 2013.
The extent of the Trump family's current business with Signature Bank is not clear.
Trump blamed President Joe Biden's economic policies for the bank's situation in a post on his Truth Social platform on Sunday.
"With what is happening to our economy, and with the proposals being made on the LARGEST AND DUMBEST TAX INCREASE IN THE HISTORY OF THE USA, TIMES FIVE, JOE BIDEN WILL GO DOWN AS THE HERBERT HOOVER OF THE MODRRN [sic] AGE," he wrote. "WE WILL HAVE A GREAT DEPRESSION FAR BIGGER AND MORE POWERFUL THAN THAT OF 1929. AS PROOF, THE BANKS ARE ALREADY STARTING TO COLLAPSE!!!"
A Trump spokesperson has been contacted for further comment.
With more than $110 billion in assets, Signature Bank's collapse marks the third-largest bank failure in U.S. history.
In a statement on Sunday, Biden said he had directed Treasury Secretary Janet Yellen and his National Economic Council Director Lael Brainard to work with banking regulators to address the problems at SVB and Signature Bank.
"I am pleased that they reached a prompt solution that protects American workers and small businesses, and keeps our financial system safe," he said. "The solution also ensures that taxpayer dollars are not put at risk."
Biden added: "The American people and American businesses can have confidence that their bank deposits will be there when they need them.
"I am firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again."
In a bid to strengthen confidence in the banking system, the U.S. Treasury Department announced on Sunday that all SVB and Signature Bank clients would be protected and able to access their money.
"This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth," Yellen, Federal Reserve Board Chair Jerome H. Powell and Federal Deposit Insurance Corporation Chairman Martin J. Gruenberg said in a joint statement.
