US Market
United States President Joe Biden insisted on Monday that the nation’s banking system was safe, seeking to project calm after the collapse of two banks stirred fears of a broader upheaval and prompted regulators to offer emergency loans to banks to stave off additional failures.
“Your deposits will be there when you need them,” Biden said.
Despite the message from the White House, investors continued to dump shares in bank stocks. Shares of First Republic Bank plunged more than 70 per cent, even after the bank said it was accessing emergency funding from the Federal Reserve, as well as additional funds from JPMorgan Chase.
US regulators closed the Silicon Valley Bank on Friday after depositors rushed to withdraw their funds all at once. It was the second-largest bank failure in US history, behind only the 2008 failure of Washington Mutual.
New York-based Signature Bank also failed.