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Bloomberg: The US is looking for solutions to prevent the spread of panic

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Bloomberg: The US is looking for solutions to prevent the spread of panic

OUR US central bank And federal deposit insurance company weighing plan, providing for the creation special fund which will allow regulators to guarantee deposits in troubled banks after unexpected bankruptcy for many her Silicon Valley BankIt is reported by Bloomberg news agency.

OUR new special safety mechanism was discussed by Fed and FDIC officials with bank leaders, and it is hoped that its creation will reassure depositors and investors and reduce the risk of bank panics, the agency said, citing people familiar with the negotiations.

The new shape is part of the design to prevent the spread of panic on the state of banks focused on investment in start-ups.

The central bank did not want to comment on the report. The FDIC did not respond to Reuters’ request for comment on the Bloomberg report.

The specialized bank collapsed as depositors, concerned about its health, rushed to withdraw their deposits.

The two-day run on deposits occupied several analysts and the markets. American banks lost 100 billion capitalization through development.

American President Joe Biden discussed yesterday Saturday with the Governor of California Gavin Newsom about the bankruptcy of Silicon Valley Bank and efforts to resolve the situation, the White House said.

“The president and governor discussed the Silicon Valley Bank and efforts to resolve the situation,” the unspecified text said.

The statement said Mr. Biden also discussed with Mr. Newsom declaring a state of emergency on Friday to secure the state’s full support from the federal government as California has been hit again by floods and landslides this year.


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Author: newsroom

Source: Kathimerini

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