The United States government intervened on Sunday night to prevent a widespread banking crisis after the historic failures of Silicon Valley Bank and Signature Bank, the second- and third-largest bank failures in U.S. history. President Joe Biden announced he would deliver remarks on the banking system on Monday to ease the panic following the collapses. The Treasury Department, Federal Reserve, and FDIC assured Silicon Valley Bank’s clients that they would be protected and have access to their funds on Monday, and the Fed made additional funding available to eligible banks to prevent similar failures. The economic collapse of these two banks has led to concerns about its impact on the American people and potential spread to other banks. Despite the extensive government intervention since the 2008 financial crisis, there could be more banks at risk. However, no lawmakers or cabinet secretaries have called for a government bailout of SVB. The situation may end with an orderly winding down of the bank and selling off its assets to other banks.

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