The Rescue of Troubled Banks in America, Prevent Global Crisis

The US financial and monetary authorities’ prompt and appropriate handling of SVB and Signature Bank will not develop into a 2008-like financial crisis with impacts on other banks, but will rather stop and stabilize.

The United States financial and monetary authorities responded quickly to rescue two sizable banks in the US, namely Silicon Valley Bank (SVB) and Signature Bank. The two banks collapsed due to the massive withdrawal of funds by their customer (bank run).

A trio of authorities, Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell, and Federal Deposit Insurance Corporation (FDIC) President Martin Gruenberg, handled the matter.