Eastern Carolina economic experts react to Biden addressing banking concerns

GREENVILLE, N.C. (WITN) – Both Silicon Valley Bank and New-York based Signature bank collapsed this past weekend.

“Executives were betting that interest rates wouldn’t change, and that was a risky bet to have,” said economic expert Nicholas Rupp.

Now the Biden Administration is addressing Americans’ concerns about the banking system, saying, “Don’t call it a bailout — at least in the 2008 sense,” as citizens would get their deposits back.

“Biden also announced that everyone that had deposits at those institutions would be made whole, so if you had money in the bank, the FDIC ensures all bank deposits up to $250,000,” said Rupp.

But Rupp says it’s not all good news, as some will still be losing their money.

“However, the shareholders of these institutions will not be reimbursed, so if you invested in one of these regional banks and it now has been declared bankrupt, then you don’t get any of your assets,” said Rupp.

While others have concerns this failure has the potential to trickle down into the stock market, experts say otherwise.

“Has nothing to do with what banks normally do, so it should be an isolated incident, and the market is actually up today,” said Jim Taunton, Greenville financial advisor.

However, Rupp did say that regional bank stocks may go down, but as long as Americans have faith in the banking system, the stock market will be fine.

Biden also said the executives of these banks would be fired.