The situation with the banking crisis bloodbath we suddenly found ourselves saddled with on Friday continues to evolve. The second-largest bank failure in the nation’s history was followed barely 48 hours later by the third-largest bank failure ever seen. Signature Bank in New York similarly failed yesterday and was being seized by the feds. We dodged a bullet on a third failure when First Republic Bank announced that it had secured emergency funding from the Fed and JPMorgan Chase as it was teetering on the edge. After Janet Yellen had announced in no uncertain terms that SVB would not be receiving a bailout from the government (from the taxpayers, really), the Treasury Department, Federal Reserve and FDIC said yesterday that all clients would be able to access their money, no matter how large their deposits may be. The difference between the current plan and a “bailout” isn’t exactly clear, but the waters seemed to have calmed a bit by last night. (Associated Press)Read More
Can Washington stop the bank runs?
