U.S. policymakers continue to try and figure out whether the government -- and its taxpayers -- should bail out a failed bank that largely served Silicon Valley, with all its wealth and power.
Santa Clara Police officers exit Silicon Valley Bank in Santa Clara, Calif., Friday, March 10, 2023. Can Washington come to the rescue of the depositors of failed Silicon Valley Bank? Is it even politically possible?
Silicon Valley Bank failed on Friday, as fearful depositors withdrew billions of dollars from the bank in a matter of hours, forcing U.S. banking regulators to urgently close the bank in the middle of the workday to stop the bank run. It's the second-largest bank failure in history, behind the collapse of Washington Mutual at the height of the 2008 financial crisis.
Despite the panic from Silicon Valley, there are no signs that the bank's failure could lead to a 2008-like crisis. The nation's banking system is healthy, holds more capital than it has ever held in its history, and has undergone multiple stress tests that shows the overall system could withstand even a substantial economic recession.
While highly unusual, it was clear that a bank failure this size was causing worries. Treasury Secretary Janet Yellen as well as the White House, has been "watching closely" the developments; the governor of California has spoken to President Biden; and bills have now been proposed in Congress to up the FDIC insurance limit to temporarily protect depositors.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
U.K. finance minister and Bank of England work to contain Silicon Valley Bank falloutMinistry of finance says that the issues affecting Silicon Valley Bank were specific to it and did not have implications for other banks operating in Britain
Lire la suite »
Can the chaos from Silicon Valley Bank's fall be contained?Prominent Silicon Valley personalities and executives have been hitting the giant red “PANIC' button, saying that if Washington does not come to the rescue of Silicon Valley bank’s depositors, more bank runs are likely.
Lire la suite »
Canadian banks erase $19.7 billion in value on Silicon Valley Bank contagionCanada\u0027s Scotiabank, BMO and TD fell more than 2% after the collapse of Silicon Valley Bank. Find out more.
Lire la suite »
Canadian banks erase $19.7 billion in value on Silicon Valley Bank contagionCanada\u0027s Scotiabank, BMO and TD fell more than 2% after the collapse of Silicon Valley Bank. Find out more.
Lire la suite »
Silicon Valley Bank is seized by U.S. regulators after historic failureU.S. regulators rushed to seize the assets of Silicon Valley Bank on Friday after a run on the bank, marking the largest failure of a financial institution since Washington Mutual collapsed at the height of the financial crisis more than a decade ago.
Lire la suite »
Silicon Valley Bank is seized by U.S. after historic failureRegulators rushed Friday to seize the assets of one of Silicon Valley’s top banks.
Lire la suite »