President Biden tried to reassure the nation on Monday by announcing that deposits that were made at Silicon Valley Bank and Signature Bank will be protected.
The collapse of two major banks in as many business days had many Americans feeling anxious about their financial security.
President Joe Biden tried to reassure the nation on Monday by announcing that deposits that were made at Silicon Valley Bank and Signature Bank will be protected.
"Your deposits will be there when you need them," Biden said on Monday morning. "Small businesses across the country that deposit [into] accounts at these banks can breathe easier knowing they'll be able to pay their workers and pay their bills."
Now, many Americans are concerned about what happens if their bank fails next.
"If you have less than $250,000 on deposit at a single institution, that deposit is insured by the federal government and is safe," the Wall Street Journal's Aaron Beck tells Inside Edition. "If you have more than $250,000 deposited at a single institution, you should consider spreading that money around to multiple institutions."
Inside Edition spoke to a few New Yorkers who bank with Signature on Monday, and they all said they were feeling reassured and certain they would be able to get back their deposits.
It was a bank run that cause Silicon Valley Bank to collapse on Friday, the second largest banking failure since the collapse of Washington Mutual in 2008.
SVB held billions of dollars worth of Treasuries and other bonds, and as the value of those bonds began to fall over the past year, the bank's customers, mostly tech start-ups in need of cash, had also started withdrawing more money.
That perfect storm resulted in the bank's collapse and the government seizing the bank early Friday.
