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Transcripts for BBCNEWS BBC News 20240604 04:01:00

11 of america s biggest private banks have stepped forward with a $30 billion rescue package for the troubled first republic bank. fears had been growing that the regional lender might be at risk of failure as a result of market turmoil. our north america correspondent peter bowes has more. well, this clearly is a big boost. there were fears it could go underjust like silicon valley bank did last week, and this $30 billion from 11 major banks that includejp morgan chase, citigroup as well, crucially important to keep first republic alive, because first republic is a very prominent bank here in california, in los angeles. over the last few days, we have seen people

Transcripts for BBCNEWS BBC News 20240604 04:03:00

in switzerland, we have obviously seen a branch of the silicon valley bank being rescued in britain and bought out by hsbc. essentially, what we re seeing here is the response central banks around the world raising rates and that having a big effect on banks, particularly, i mean, this is a spreading crisis, as it was in 2008. i mean, the conversation we were just having about people lined up outside banks in los angeles, the problem is to try and stop this, and, essentially, what has happened is that neither depositors, nor investors have confidence in global banks. and once that happens, that s really bad. people are pulling money out of banks and putting them into money market funds because they don t trust banks. we have been here before. we were there in 2008 and, essentially, what we have now is a global financial crisis

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