Dramatizes The Panic News Today : Breaking News, Live Updates & Top Stories | Vimarsana

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? >> it's not free. it comes with costs. >> plus, are more banks in danger of collapse? >> there's 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 this? >> fight high inflation with rising interest rates. or back off to calm down the troubled b...

Depositors and keeping them safe has been the sole focus of what they're doing. >> you're seeing so many of these banks see deposit outflows. >> and they're going to the big guys. >> which is a little ironic after 2008 when we said these banks were too big. >> now they're really too big. >> now they're even bigger. >> what's happening to credit swedes and saying we'll step in if we need to is not what is happening in the u.s. to svb and these others, but it's sort of this vortex, and everyone is panic. explain why that's different. >> we're decided on hot mess. train wreck, actually. >> train ...

Of confidence in the bank, and that leads to large withdrawals. the bank can't 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. that's 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 fdic-insured banks. actual bank failures still happen. there were a lot during the great financial cr...

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. we've 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 those, crystallized a loss, then have to go to the market and say look, guys, we need a bit of money...

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 government's made it clear that it is determined to ensure that all depositors will be able to get their money promptly and in full. that's what it signaled with its actions at svb, the silicon valley bank. and signature bank and with the support that it provided to the banking system more broadly. it's not just people with insured deposits un...