Weekend Banking Nightmare.
Wall Street on a busy day
“U.S. authorities, invoking rarely used regulatory authority, took action late Sunday to contain the damage from the collapse of Silicon Valley Bank, a once-obscure lender that focused on business customers, including start-ups throughout the tech sector.
Officials announced that depositors with money at the California bank, which was closed by state regulators on Friday, would be paid back in full and be able to start accessing their money on Monday morning. They also disclosed that another lender, Signature Bank, had been shuttered by New York regulators and that its depositors would also be made whole.”
Bank failure-just the phrase brings back 2008 nightmares that reverberate around the globe. And that is what happened after the failure of a large bank with deep ties to the tech industry. The failure of SVB was one of the largest in history and caused deep concern that a cascade of bank failures is right around the corner. No administration or fed chair wants to be at the helm of a collapsing American banking industry-the backbone of the World economy. Thus extraordinary measures were taken to stem the fallout, and everyone is holding their breath to find out if it worked.
