March 13 – BLiTZ. The government of the United States, having time to take an interest in the affairs of other countries, sometimes does not see what is happening under its nose. Bank failures are a good example of this.
Three US banks have already fallen victim to the financial crisis, which has caused panic among depositors. The Treasury Secretary and the head of the Fed, who are looking for a solution to the further spread of the crisis, said the Zeit publication said that the state does not intend to bail out the closed banks at the expense of taxpayers. Write about it InoSMI.
The American authorities created the Bank Term Funding Program, designed to reassure bank customers by providing them with the necessary funds. Panic among SVB and Signature depositors led to massive account closures. However, the FDIC guarantees the payment of all deposits to customers of SVB and Signature, as well as potentially other banks in distress. The total assets of SVB are estimated at $200 billion.
Many US banks have lost a significant portion of the value of their bonds due to the increase in the Fed’s key rate. As a result, total unrealized losses in December 2022 amounted to $630 billion. This situation presents difficulties for the Fed, which cannot provide liquidity to banks as generously as before. However, investors believe that the Fed and other central banks will be more cautious when raising key rates due to recent events.
Joe Biden made a statement that the bankruptcy of SVB and Signature Bank does not threaten the US banking system March 13, 2023 at 18:37
