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
Tragic Explosions in Beirut Linked to Conflict Escalation
Crown Prince Mohamed Bin Salman confirms that Saudi Arabia will not normalize with Israel unless Palestine is recognized a state with East Jerusalem as its capital.
In his podcast, Joe Rogan rightly questioned, "YOU NEED A VACCINE PASSPORT FOR FOOD, BUT VOTER ID IS ‘RACIST'?!"
BYD changing the whole game
Campania President Criticizes NATO Expansion, Warns of Dangerous Consequences
Trump Unveils New Cryptocurrency Venture Amidst Campaign
OpenAI Advances with New AI Model 'o1'
Diddy Charged with Racketeering and Sex Trafficking
Pagers: Essential Devices for Critical Services
Florida Woman Banned from $350,000 Global Cruise for WhatsApp Comments
Booby-Trapped Devices Cause Explosions in Lebanon
Florida Woman Convicted for Husband’s Murder
Israel Alerts of Northern Conflict Amid Hezbollah Escalation
US Federal Reserve Reduces Interest Rate by 50 Basis Points
Germany Halts War Weapon Exports to Israel Amid Legal Hurdles
Kamala Harris Leads Trump in Pennsylvania and Michigan
Employees at Musk's Companies Donate More to Harris Despite His Support for Trump
Iran Appoints First Sunni Governor in 45 Years
US Pursues $100 Million From Singapore-Based Ship Owner
X Update Enables App to Bypass Brazil Ban, Say Internet Providers
Delta Airlines Sets Strict Wardrobe Guidelines for Flight Attendants
Norway Achieves Milestone in Electric Vehicle Adoption
Hezbollah Hit by Explosive Pagers in Lebanon
Ex-Soldier Describes Trump Assassination Suspect's Troubled Ukraine Stint
The Observer, World's Oldest Sunday Newspaper, Up for Sale
Notre Dame Poetic Mystery Nears Resolution
JPMorgan in Negotiations with Apple Over Credit Card Partnership
Ghislaine Maxwell's Sex-Trafficking Conviction Upheld by Appeals Court
Kamala Harris Contacts Trump After Assassination Attempt
Startup nation hit back: Israel Executes Unprecedented Cyber Operation, Decimates Hezbollah Communications Network
USA 2024: ‏Trans with crucifix in hand dances on American police car
Hillary Clinton Suggests Jailing Americans for Posting “Misinformation”
Pakistan has announced the discovery of the world's fourth-largest oil and gas reserves.
Will the Blind Commander-in-Chief Lead Blind Voters into War?
El Salvador's Bold Move: President Bukele Declares End to External Debt Reliance, Thanks to Bitcoin
Here, in Taylor Swift's own words...
Egypt will replace their American F-16's with new Chinese Fighter Jets
Murdoch Family Succession Battle Begins
TikTok Faces Potential Ban in the US Amid Free Speech Concerns
Secret Service Investigates Elon Musk's Controversial Social Media Post
Meta Bans Russian State Media Networks
Greta Thunberg Labelled 'Antisemite Of The Week' By Jewish Advocacy Group
Karen Dunn: Google Lawyer and Kamala Harris' Debate Coach
Donald Trump Criticizes Kamala Harris Amid Assassination Attempt
Hamas Leader Yahya Sinwar Discusses Extended Conflict Preparedness
Patient Controls Amazon's Alexa Using Brain Implant
Murdoch Family Legal Feud Could Alter Fox News' Future
US Secret Service Under Scrutiny After Second Attempt on Trump’s Life
US Diplomat Condemns Racism Against Indian Americans
Trump Shooting Suspect Identified as Independent Voter
×