Considering all the things that can cause us to worry, we really don’t need to add the safety of our bank accounts to the list — but that is happening. People are worried about the stability of banks as a result of two recent bank failures.
Silicon Valley Bank in California and Signature Bank in New York were both shut down by state regulators within three days of each other, on March 10 ( tinyurl.com/44d2pjw2) and March 12 ( tinyurl.com/3byz2kf2), respectively.
Luckily, even uninsured deposits were saved. The March 12 joint statement released by Secretary of the Treasury Janet Yellen, Federal Reserve Board Chair Jerome Powell and FDIC Chairman Martin Gruenberg ( tinyurl.com/3jtftv5b) made it clear that a “systemic risk exception” for the two banks would allow FDIC insurance coverage for even those accounts that exceeded $250,000, the FDIC insurable cap.
In a speech on March 14, Federal Reserve Gov. Michelle W. Bowman said, “One significant factor leading to the stress and subsequent closure at each institution was the rapid outflow of deposits, specifically uninsured deposits above the FDIC-guaranteed amount of $250,000 per depositor, per account type” ( tinyurl.com/4sa87tx5). (The uninsured deposits at both banks totaled nearly 90% of all deposits, according to S&P Global Market Intelligence, tinyurl.com/nxvuft9z.)
In the meantime, Credit Suisse, a “too big to fail” global bank headquartered in Switzerland, captured headlines when its biggest shareholder, the Saudi National Bank, announced on March 15 that it would not put any more money into Credit Suisse (...
from News https://www.ctpost.com/news/article/julie-jason-amid-recent-bank-failures-are-you-17846491.php
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