Biden arrives in San Diego with his daughter Ashley and granddaughter Natalie
President Joe Biden landed in San Diego on Monday with daughter Ashley and granddaughter Natalie to sign a nuclear submarine agreement with Britain and Australia – as a bust Silicon Valley bank sent shockwaves through Wall Street.
He stepped off Air Force One before a ceremony for a military agreement to unite the countries to fight China and strengthen their nuclear fleets.
Deal with British Prime Minister Rishi Sunak will help the Prime Minister of Australia Anthony Albanese to acquire at least three high-speed submarines of the US Virginia class.
41-year-old Ashley and 18-year-old Natalie followed him out of the plane door in California sun – when the contagion spreads in the financial markets.
At least 20 regional banks were shut down during Monday’s unrest after the president assured Americans that the banking system is “safe” and taxpayers will not be affected.
President Joe Biden landed in San Diego on Monday with daughter Ashley and granddaughter Natalie to sign a nuclear submarine deal with Britain and Australia — as the collapse of a Silicon Valley bank sent shockwaves through Wall Street
Ashley, 41, and Natalie, 18, followed him out the plane door into the California sun – as the contagion spread through the financial markets.
Hedge fund boss Bill Ackman warned that “the economy will not function” if Biden “does not guarantee all deposits now” as the contagion spread to the trillion-dollar US banks of the Big Four.
Shares of Wells Fargo fell 7.5%, Bank of America fell 7.4%, Citigroup fell 5.8% and JP Morgan fell 2.7%.
Among the worst-hit regional banks was Western Alliance, whose shares fell 75 percent when the opening bell rang. Trade breakers were also imposed on First Republic, as its value fell by two-thirds, and PacWest, which fell 35 percent.
“Our economy will not function effectively without our community and regional banking system. Therefore, the Federal Deposit Insurance Corporation must now expressly guarantee all deposits. Hours matter, Ackman said.
“We need to hear from our government that it is clearly committed to preserving our system of smaller banks. While each small bank is not ‘systemically important’ like @jpmorgan or @Citi, collectively they are just as, if not more, systemically important.”
The decline came despite US authorities on Sunday assuring SVB customers that their money would be safe and ready for withdrawal on Monday after a $200bn bank run that triggered the second-biggest collapse in history, the worst since 2008.
Before boarding Air Force 1, the president made brief remarks, hoping to reassure Americans that “U.S. banking is safe” following the collapse of Silicon Valley Bank on Friday.
Shortly after Biden’s departure, the New York Stock Exchange opened and trading was quickly halted three banks: First Republic Bank, Western Alliance and PacWest after shares fell 75 percent.
Financial turmoil continues to cloud international trade as Wall Street tries to figure out what caused the collapse of scores of U.S. banks. Stocks are swinging sharply on Monday as investors try to find a safe place to park their money.
San Diego is Biden’s first stop on a three-day trip to California and Nevada. He will discuss gun violence prevention in Monterey Park, Calif., and his plans to lower prescription drug costs in Las Vegas.
The trip will include fundraising stops as Biden ramps up his political activities ahead of an expected announcement next month that he will seek re-election in 2024.
Before boarding Air Force 1, the president made brief remarks, hoping to reassure Americans that “U.S. banking is safe” after the collapse of Silicon Valley Bank on Friday
Biden then sat down with Australian Prime Minister Anthony Albanese (left) and British Prime Minister Rishi Sunak (right)
The Sunak deal will help Australian Prime Minister Albanese buy new US Virginia-class submarines and strengthen their nuclear fleet
After landing in San Diego, home to the US Pacific Fleet, Biden will meet with Australian Prime Minister Anthony Albanese and British Prime Minister Rishi Sunak – two of America’s closest allies – as part of the 18-month nuclear partnership, known by the acronym AUKUS, which stands for Australia, United Kingdom, United States.
The consortium, announced in 2021, has paved the way for Australia’s access to nuclear-powered submarines, which are stealthier and more capable than conventionally powered boats, as a counter to China’s military buildup.
On the eve of the tripartite meeting, Sunak announced he will increase Britain’s military funding by £5 billion ($6 billion) over the next two years in response to Russia’s invasion of Ukraine and Chinese aggression.
A partnership with AUKUS was announced in 2021, but Monday’s announcement will clarify the details. Australia is acquiring up to five Virginia-class boats in the deal, the Associated Press reported.
China objects to the deal, saying it violates the Nuclear Non-Proliferation Treaty, which prohibits the transfer of nuclear weapons materials from a nuclear-weapon state to a non-nuclear-weapon state.
Australian officials deny that they are working on acquiring nuclear-powered, not nuclear-powered, submarines.
Biden will also hold bilateral meetings with Albanese and Sunac in San Diego.
Australia to buy up to five Virginia-class submarines – above USS North Dakota
British Prime Minister Rishi Sunak (left) speaks with Australian Prime Minister Anthony Albanese at Lionfish Seafood Restaurant in San Diego on Sunday
British Prime Minister Rishi Sunak speaks to the British press traveling with him to San Diego
Silicon Valley Bank SVB’s logo is pictured at its German branch in Frankfurt, Germany, as concerns grow over possible international financial contagion
Signature Bank was taken over by New York state agencies last Friday, March 12, 2023.
The three parties worked on the security Australia with a fleet of nuclear submarines, given restrictions on technology transfer and secret nuclear processes.
Sunak is on his way to the USA said that China “represents an epoch-defining challenge for us and for the world order.” It is a regime that is increasingly authoritarian at home and assertive abroad, and has a desire to change the world order.”
But, he added, “you can’t ignore China,” given the size of its economy.
“It is right to engage with China on issues where we can find common ground and make a difference, such as climate change, global health, macroeconomic stability,” he said.
“This is the right approach, at the same time very reliable in protecting our values and our interests.”
The secret AUKUS deal involved the Australian government canceling a $66 billion contract for France’s fleet of conventional submarines, sparking diplomatic battle in the western alliance that took months to fix.
French President Emmanuel Macron recalled his ambassador from Washington in September 2021 and later met with Biden in Italy during the G20 meeting so the two could make amends.
Biden called Macron on Tuesday, but the White House did not say whether the AUKUS deal had gone through.
The two leaders discussed China’s growing influence in the South Pacific, an issue that also concerns Australia.