![]() In a joint statement, the US treasury secretary, Janet Yellen, Federal Reserve chair, Jay Powell, and senior regulators said: “This show of support by a group of large banks is most welcome, and demonstrates the resilience of the banking system.”Īhead of the news Yellen assured Congress on Thursday that the US banking system was “sound”. They fell another 22% on Thursday before the bailout but ended the day up nearly 10%. Shares in First Republic – a San Francisco-based bank that largely caters to wealthier clients including the Facebook co-founder Mark Zuckerberg – had fallen about 70% since the news of SVB’s collapse. US authorities swooped in to take control of SVB and New York’s Signature bank last weekend after frightened customers pulled their deposits.īanks and regulators are hoping that the action will act as a firewall by protecting First Republic and stopping the crisis spreading to other smaller banks. The big banks have received billions in deposits from smaller, regional banks as the banking crisis has spooked their customers. Together, we are deploying our financial strength and liquidity into the larger system, where it is needed the most,” the banks said in a joint statement on Thursday. “The actions of America’s largest banks reflect their confidence in the country’s banking system.
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