The US central bank (Federal Reserve System-Fed) announced that a closed meeting of the board of governors will be held on Monday in accordance with emergency procedures, Reuters reports.
The main topic of the meeting, which will begin at 11:30 a.m. (03:30 GMT), will be the review and setting of interest rates charged by banks in the Federal Reserve System, the Fed said in a statement, Agerpres reports. .
The U.S. central bank did not provide other details, but the meeting of Fed officials comes after the collapse of Silicon Valley Bank, the biggest failure of a financial institution since the global financial crisis of 2008. California tech entrepreneurs should worry about funding.
A Silicon Valley bank collapsed after depositors worried about the bank’s financial health rushed to tellers to withdraw their savings. This bank raid caught financial markets off guard and wiped more than $100 billion off the market value of American banks.
According to sources cited by Bloomberg News, the Federal Reserve and the U.S. Bank Deposit Insurance Fund (FDIC) are considering creating a special fund that would allow regulators to cover more deposits in troubled banks after the collapse of Silicon Valley Bank. The sources added that regulators have discussed this special new machine in talks with bank executives and hope the move will reassure depositors and quell any panic.
Read also:
- The sudden collapse of Silicon Valley Bank (SVB), the biggest bankruptcy since 2008
- The biggest bank failures since 2008
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.