The public push is part of a larger effort by the Biden administration to safeguard the U.S. economy and ensure that individual bank failures can be contained without triggering a chain reaction across the wider financial system
Prior to closing down Silicon Valley Bank, Fed supervisors had first raised questions about the bank’s risky practices in 2021 and had warned the bank’s management about them in the fall of that year
The Conference Board reported that its consumer confidence index rose to 104.2 in March, even as persistent inflation, bank collapses and anxiety over a possible recession weighed on Americans
Experts say it’s probably a good idea for small businesses to diversify funds and make sure they’re in close contact with their banker, but emphasized that in the short term their bank accounts are safe
However, experts caution the sale doesn’t by itself provide an immediate all-clear for other banks following the second- and third-largest U.S. failures in history. That will likely take more time
The lender failed after depositors rushed to withdraw money amid fears about the bank’s health. It was the second-largest bank collapse in U.S. history after the 2008 failure of Washington Mutual
Perhaps no treasury secretary has arrived with such an ample resume. All of her know-how was put to a severe test as she worked to assure multiple constituencies, including financial markets, balky Republicans in Congress and President Joe Biden’s White House economic team
Cases such as those of Silicon Valley Bank and Credit Suisse show how the sector is facing new risks, such as the speed of fund outflows or the viral spread of bad news and rumors
The upheaval in the financial system that’s followed the collapse of two major U.S. banks is raising the likelihood that lending standards will become sharply more restrictive
Leaders of the Senate’s banking committee are looking into the collapse of Silicon Valley Bank and Signature Bank and have told the ex-CEOs that they expect them to testify
The Fed warned that the financial upheaval stemming from the collapse of two major banks is ‘likely to result in tighter credit conditions’ and ‘weigh on economic activity, hiring and inflation’
Investors who held bonds known as CoCos were wiped out in the sale to UBS, triggering fears that banks will find it harder to borrow and in turn tighten credit
The investors who lost millions after two large US banks failed included public-sector pension funds responsible for ensuring the retirements of teachers and other government workers
A handful of red-state Democrats were instrumental in helping Republicans secure a rollback of banking regulations sought by then-President Donald Trump in 2018
The fall of SVB has caused multi-billion dollar losses around the world and will weigh on the economy, but experts believe that authorities can contain the damage