The collapse of two American banks is sending shock waves around the world.. and putting pressure on markets. Investors are worried about a contagion effect beyond the US.
Asian shares are seeing steep losses on Tuesday
and European banking stocks suffered their biggest drop in a year. US President Biden sought to reassure depositors on Monday – insisting he will provide for the safety of the banking system. Meanwhile, however, ratings agency Moody’s downgraded the debt ratings of collapsed Signature Bank deep into junk territory. Moody’s also placed the ratings of six other U.S. banks under review for a downgrade.
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#Bankcollapse #USA #businessnews…(read more)
LEARN MORE ABOUT: Bank Failures
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The 2008 financial crisis was a major event in the history of the United States, and it led to the collapse of many banks and financial institutions. It was a time of uncertainty and fear, and many people lost their jobs, homes, and savings. In the aftermath of this crisis, the government and the banking industry have taken steps to avoid a similar situation in the future.
The Federal Deposit Insurance Corporation (FDIC) was established in 1933 to protect depositors and maintain stability in the banking system. The FDIC provides deposit insurance to account holders at member banks and saves banks that are in financial trouble. In the wake of the 2008 crisis, the FDIC raised the deposit insurance limit to $250,000 to ensure that more depositors are protected.
Another important measure taken to prevent another financial crisis is the Dodd-Frank Wall Street Reform and Consumer Protection Act. This act was passed in 2010 and introduced new regulations for banks and financial institutions. It established the Consumer Financial Protection Bureau (CFPB) to protect consumers from abusive financial practices and enforcement measures on banks to prevent them from engaging in risky behavior.
The Dodd-Frank Act also requires banks to have a “living will,” which is a plan that outlines how the bank would manage its assets in the event of a crisis. This living will is designed to prevent a repeat of the 2008 crisis, where banks were too big to fail and had a negative impact on the entire economy.
In addition to these measures, the government and the banking industry are working together to ensure that banks have adequate capital and are able to handle financial shocks. The Federal Reserve conducts stress tests on banks to assess their ability to withstand an economic downturn. Banks that are found to be insufficiently capitalized are required to raise additional capital or reduce their risk exposure.
Despite these measures, many experts believe that the banking system still has vulnerabilities that could lead to another crisis. In particular, some banks are still considered too big to fail, and their failure could have catastrophic consequences for the entire economy. There are also concerns about the growth of shadow banking, which involves non-bank financial institutions that operate outside of traditional regulations.
In conclusion, the 2008 financial crisis was a wake-up call for the United States, and since then, the government and the banking industry have taken steps to prevent a similar situation from happening again. However, there are still risks and vulnerabilities in the system, and it’s important for regulators and the industry to remain vigilant to ensure that the banking system remains stable and robust.
Nothing you need glass steagle restored, but they won't do that.
Bailouts for the big players and the elites.
Reassuring words for the masses.
This is just getting started. Just like 2008. Remember, Bear Stearns collapsed in March, and the big collapse kicked off by Lehman didn't happen until September.
This is not capitalism its low interest rates and bailouts pushed by governments. That caused this
US Fed said that not all banks will be saved. This caused panic; people are moving their money from small community banks to big banks; thinking that big banks are too big to fail.
Hope to collapse in usa and euro
Well the Collapse of Silicon Valley Bank has torn into global markets, with investors ripping up their forecasts for further rises in interest rates and dumping bank stocks around the world. I'm at a crossroads deciding if to liquidate my dipping 200k stock portfolio, what’s the best way to take advantage of this bear market?
This is such awesome irony.this USA & European sanctions on Russia was supposed to strangle and isolate Russia, be it's economy and financial institutions, but now, whose economies are suffering and their financial institutions are collapsing….seemed it's not Russia but USA & Europe, isn't it? Have the average american and european citizens wake up to their Govt misdemeanors or not? Don't think so….personally spoken to a few average americans & Europeans and they still believed their Govt are right in their support of the Ukraine war….so misinformed and Indeed, so sad.
USA do something wrong but not hurt himself but other countries.
That is BS. Rich Chinese who had money in SVB will be bailed out by folks in Oklahoma paying more in FDIC fees to make the Chinese whole along with others. The large banks are taking over the small banks and soon the monopoly;y of the big banks will be complete and enabled by Janet Yellen. Soon the big banks with politicians in their pockets will control all the money. The Fed will take over the monetary system using its new Fed digital currency. This is all illegal as congress was never consulted.
This has nothing to do with 2008. It holds nothing in common with 2008. Stop spreading lies
Now, Credit Suisse is on the verge of collapse, looking to borrow more than $53 Billion to stay afloat, with investors ripping up their forecasts for further rises in interest rates and dumping bank stocks around the world. I'm at a crossroads deciding if to liquidate my dipping 200k stock portfolio, what’s the best way to take advantage of this bear market?
If the banking system is safe, why is it failing?
Wait for it…
The U.S. Banking System is 'safe'? Safe from what? Safe as long as the American people pay for the crookery of the banks and this inverted-totalitarian government. Ig's past time but not too late for people that insist on living in freedom with dignity to organize into guerilla armies, nationally, and totally eradicate a 100% Corrupt, Cabal-Controlled, Inverted-Totalitarian, Police-State Government masquerading as a capitalistic-free-democratic-government that's never existed.
At this rate of mismanagement of Banks and the government bailout will $1.00 in 2024 be able to buy one egg.
Oh no…CAPITALISM!!! Quickly, spread news about those evil capitalists on your beloved electronic consumer goods.
{I have no financial interest . Information only}
Insurance above the FDIC limit :
The Certificate of Deposit Account Registry Service, or CDARS, represents a network of banks that insure millions for CD savers.
US Paper economy collapse
The US has done it again, when will you ever learn. Your incompetence flows through to other countries. Regulate your banks!!!
Maskoffaid on youtube what can I compare him to with his loyalty honest trustworthy and also good fearing he is the best I can recommend to anyone
Maskoffaid on youtube what can I compare him to with his loyalty honest trustworthy and also good fearing he is the best I can recommend to anyone
Banks are such a scam