Mar 16 11 big banks create $30 billion rescue package for First Republic By Ken Sweet, Associated Press Eleven of the biggest banks in the country announced a $30 billion rescue package for First Republic Bank on Thursday, in an effort to stop the California-based bank from becoming the third bank to fail in less than a week. Continue reading
Mar 15 How the digital era helped speed up bank runs By Ken Sweet, Stan Choe, Associated Press What made the failure of Silicon Valley Bank unique compared to past failures of large banks was how quickly it collapsed. Last Wednesday afternoon, the $200 billion bank announced a plan to raise fresh capital; by Friday morning it was… Continue reading
Mar 15 How the 2008 financial crisis fuels today’s populist politics By Will Weissert, Associated Press Mike Pence and Bernie Sanders are hardly political allies. But after two large bank failures, the conservative former vice president and the democratic socialist senator are striking remarkably similar tones. Continue reading
Mar 14 Analysis: Why Silicon Valley Bank and Signature Bank failed so fast By Vidhura S. Tennekoon, The Conversation Silicon Valley Bank and Signature Bank failed with enormous speed – so quickly that they could be textbook cases of classic bank runs, in which too many depositors withdraw their funds from a bank at the same time. Continue reading
Mar 14 Stocks rally on Wall Street following inflation report, bank failures By Stan Choe, Associated Press The S&P 500 was 1.5 percent higher in early trading after a report showed inflation is still high but heading lower. Stocks of smaller and mid-sized banks recovered some of their prior plunges caused by worries that customers could yank… Continue reading
Mar 12 Federal government moves urgently to avert potential banking crisis By Ken Sweet, Christopher Rugaber, Chris Megerian, Cathy Bussewitz, Associated Press The U.S. government took extraordinary steps Sunday to stop a potential banking crisis after the historic failure of Silicon Valley Bank, assuring depositors at the failed financial institution that they would be able to access all of their money quickly. Continue reading