Dramatizes The Panic News Today

leaves more questions than answers. did the government step in at just the right time or over step with what critics say is another bank bailout? >> its not free. it comes with costs. >> plus, are more banks in danger of collapse? >> theres just panic. >> concerns spread to bigger institutions. >> can you squeeze under the pressure? >> as bank stocks take a rollercoaster ride. and regulators faced with a dilemma. >> were they asking the right questions? were they keeping an eye out for...

Depositors and keeping them safe has been the sole focus of what theyre doing. >> youre seeing so many of these banks see deposit outflows. >> and theyre going to the big guys. >> which is a little ironic after 2008 when we said these banks were too big. >> now theyre really too big. >> now theyre even bigger. >> whats happening to credit swedes and saying well step in if we need to is not what is happening in the u.s. to svb and these others, but its sort of this vortex, and everyone is panic. ...

Of confidence in the bank, and that leads to large withdrawals. the bank cant pay everyone who wants their money all at once, and it fails. during the great depression, thousands of banks failed. 9,000 to be exact. taking $7 billion worth of customers assets with them. thats why the new deal included laws to ensure deposits and boost confidence in financial institutions. the federal deposit insurance corporation, the fdic, was created in 1933. and today covers up to $250,000 per depositor at fdi...

Do that in an interest rate environment like this. >> i think the point for our viewers to understand is how unique this situation was at silicon valley bank. they had this exposure to the tech sector. weve seen the value of amazon and apple tumble over recent months. plus you had this situation where they bought all these so- called safe assets that lost value because the fed raised interest rates. when people started pulling their deposits out, they had to raise money, so they sold a load of t...

For panic or alarm. this is not 2008 where people needed to be worried about whether they could get their money from the atm machine. it absolutely is not that. there may well be concerns at certain banks, and they may even be more bank closures. but the governments made it clear that it is determined to ensure that all depositors will be able to get their money promptly and in full. thats what it signaled with its actions at svb, the silicon valley bank. and signature bank and with the support ...

Stock. in whats app chat, they socialized the idea of a bank run. by the end of march 9th, investors attempted to withdraw $42 billion. seizing the bank the very next day. u.s. officials had a much, much bigger problem. panic. panic was seeping over the entire banking system. thats what drove a dramatic emergency response. you probably feel like all of this came out of nowhere. take some solace in that feeling. before the end of last week, these folks didnt know one was coming either. neither di...