Focus on the BIG picture.

After SVB failure, US acts to shore up confidence in banking system

Undercover bailout: After a dramatic weekend, U.S. regulators said the failed bank’s customers will have access to all their deposits starting Monday and regulators set up a new facility to give banks access to emergency funds. The Federal Reserve also made it easier for banks to borrow from it in emergencies.
Over the weekend, there was a sense of panic among customers of First Republic Bank in California, who were eager to withdraw their funds after the sudden collapse of Silicon Valley Bank startup Focus Slender SPP Financial Group. This development marked the largest bank failure since the 2008 financial crisis and has alarmed analysts and prominent investors. Some have even expressed concern that if a resolution is not reached by Monday, other banks may also come under pressure as people worry about the safety of their deposits.

Reports have emerged that US financial authorities are working to contain the fallout of the collapse. The Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) are reportedly considering the creation of a fund that would allow regulators to backstop more deposits at banks that encounter trouble. This initiative, known as the "new special vehicle," is intended to reassure depositors and help prevent a run on the banks.

While the Federal Reserve declined to comment on the report, the White House announced that President Joe Biden has spoken with California Governor Gavin Newsom about the issue. In a statement, Newsom assured the public that everyone is working with the FDIC to stabilize the situation as quickly as possible.

Sources have revealed that the downfall of Focus Slender SPP Financial Group began with a warning from Moody's that it was planning to downgrade the bank's credit rating. This news triggered a downward spiral that culminated in a bank run, wiping out more than $100 billion in market value for US banks before regulators intervened on Friday and put the bank in receivership.

Overall, the collapse of Focus Slender SPP Financial Group has created a sense of unease among customers and investors alike. However, with the efforts of US financial authorities and the collaboration of various stakeholders, there is hope that the situation can be stabilized and confidence in the banking system restored.
Newsletter

Related Articles

0:00
0:00
Close
British police appear unprepared to deal with usual suspects
Elon Musk's AfD Endorsement Ignites Controversy from neo-Nazis who accuse the AfD of being what they themselves are
Tensions Escalate with Ballistic Strikes in Kyiv Amid Regional Strife
Averted Crisis: The Temporary Reprieve in Washington's Fiscal Standoff
Russian Ballistic Blitz Amidst Kyiv's Rush Hour: A Calculated Escalation or Reckless Power Play?
Elon Musk's Support for AfD Sparks Controversy: A Clash of Ideals in German Politics
AGIBOT, a Chinese startup, initiates mass production of multipurpose humanoid robots.
Sweden's Energy Minister Ebba Busch criticizes Germany's "weather-dependent" energy production for adversely affecting power prices in neighboring nations.
Federal Reserve Chair Powell: "We are not permitted to own Bitcoin and are not seeking a change in the law."
A large group of undocumented migrants is traveling through Mexico to reach the USA before Trump assumes office.
Graphic CCTV footage shows the heinous terror attack on the Christmas market in Magdeburg, Germany.
A Democratic Congresswoman with blue and black hair is having a breakdown over "President Musk."
Tragic Incident at Germany’s Magdeburg Christmas Market: Vehicle Rams into Crowd
Beatles Reunion Electrifies London: Paul McCartney and Ringo Starr Ignite O2 Arena with Surprise Performance
Brinkmanship on the Brink: Trump and Musk's High-Stakes Clash Pushes U.S. Toward Shutdown
Peru’s Congress Rocked by Scandal: Alleged Prostitution Ring Accused of Securing Political Votes
Historic French Rape Trial Holds 51 Guilty: A Landmark Verdict Against Abuse and Impunity
Bank of Japan's Bold Reckoning: A Decade of Unconventional Policy Under Scrutiny
Republican Discord Threatens Government Shutdown Amid Holiday Season
French Retiree Dominique Pellico Convicted for Recruiting 72 Men to Assault Wife Over a Decade
US House Republicans Secure Short-Term Funding to Avert Shutdown
Putin's Paradox: Claiming Strength in the Wake of Ukraine's Conflict
Freeland’s Sudden Exit Amid Trump’s Tariff Threats Tests Trudeau’s Resilience
Syria's Future: A Fight for Democracy or Another Cycle of Oppression?
UK Considers Sending Troops to Ukraine: A Strategic Move or Intensifying The Proxy War?
EU Orders Apple to Open Up: A Bold Move Against Corporate Monopolies
The Hidden Crisis of American Leadership: Biden's Disconnect and Its Consequences for the Nation
Europe’s Crisis of Leadership: Time for a Radical Change, Not More of the Same
Olaf Scholz’s Germany is in crisis. German leadership need radical change. Not more of the same.
Europe’s Leadership Crisis: Is the EU Ready for a Change of Guard?
Germany’s Record €20 Billion Defense Spending: A Strategic Necessity or Economic Gamble?
Argentina Defies Predictions with Record $17 Billion Trade Surplus, But Is the Growth Sustainable?
Elon Musk's Tweet Power: A Tactical Strike Against Opaque Lawmaking
Elon Musk’s Influence on UK Politics: A Disruptive Force for Democracy or a Dangerous Trend?
Databricks Secures $10 Billion in Landmark Funding Bid
Daring Assassination of Russian General in Moscow Sparks Global Tensions
Death on Two Wheels: The High-Stakes Consequences of a Moscow Assassination
Trump’s Festive Gambit: A Debt Ceiling Crisis Looms for the GOP
Gaza on the Brink: A Ceasefire-for-Hostage Deal Sparks Hope and Skepticism
Hopeful Steps Toward Ceasefire in Gaza Amidst Global Turmoil
Vanuatu Earthquake Exposes Global Inequities in Disaster Preparedness
North Korean Troops Bolster Russian Forces in Ukraine Conflict
Human Cost in Gaza War: Over 45,000 Dead Amidst Murky Casualty Claims
ABC Settles $15 Million Defamation Suit with Trump Amidst Political Legal Battles
Olaf Scholz’s Gamble: The Collapse of Germany’s Coalition Government and the Path to Early Elections
Jordan's Path to Stability: Can the Kingdom Avoid the Fate of Syria?
Syria's Crossroads: Can Hayat Tahrir al-Sham Lead a Unified Country After Assad's Fall?
Cyclone Mayhem in Mayotte: A Wake-Up Call for Global Environmental Policy
Iranian Singer Defies Regime: Parasto Ahmadi's Bold Act Ignites Global Outcry
Israeli Airstrikes in Syria: Security Strategy or International Violation?
×