People were seen waiting outside a Silicon Valley Bank branch location in Palo Alto, California, on Monday, March 13, following announcement of the bank’s collapse.

Video filmed by Luis Garicano, a former member of the European Parliament turned economics professor, shows the line of people alongside his commentary on the situation.

According to Garicano, a representative of the Federal Deposit Insurance Corporation (FDIC) was present and handed out a paper with information assuring “everything is guaranteed” by the US federal government. Garicano criticized the apparent deviation from the standard that only deposits up to $250,000 are covered by the FDIC, and said he thinks the situation shows that the “current banking model is completely broken.”

“A sad day for those who believe in consequences,” Garicano said.

US President Joe Biden spoke on the situation from the White House on Monday, saying taxpayers would shoulder none of the costs associated with the collapse of the Silicon Valley Bank and emphasizing that “the banking system is safe.”

Biden praised his administration’s “immediate action” to contain the fallout of the collapse. His remarks came a day after federal regulatory authorities took control of Silicon Valley Bank and announced measures to guarantee all depositors.

Biden criticized the Trump administration for rolling back some requirements that would have given regulators more oversight over the banks. “I’m gonna ask congress and the banking regulators to strengthen the rules for banks to make it less likely this kind of bank failure would happen again,” Biden said. Credit: Luis Garicano via Storyful