Banking Turmoil. What’s Next?
Jeffrey P. Marsico
Richard B. Trauger, Jr.
Sharon J. Lorman
Podcast Show Notes:
Our This Month In Banking (TMIB) podcast features discussion with colleagues and other industry thought leaders on interesting banking topics. TMIB is available on the last Wednesday of every month here, or wherever you get your podcasts, for your listening enjoyment. Join us on your commute, at your desk, or at home.
Special Episode of This Month in Banking
Topic: Banking Turmoil. What’s Next?
NY state regulators closed New York-based Signature Bank on Sunday March 12th, two days after The Federal Deposit Insurance Corporation (FDIC) took possession of California-based Silicon Valley Bank (SVB) and took control of its deposits, in what is the largest U.S. bank failure since the global financial crisis nearly 15 years ago. After SVB announced recently that it lost $1.8 billion in the sale of securities, the bank, which was known to primarily serve tech and venture capital companies, failed to secure additional investment capital and experienced a run on bank deposits and a capital crisis. Signature Bank, a New York State based financial institution with a big real estate lending business that recently also began serving the cryptocurrency industry, suffered a crisis of confidence stemming from SVB’s seizure, losing billions of dollars in a bank run. A joint statement by the Department of the Treasury, Federal Reserve, and FDIC stated that depositors will have access to all of their money starting Monday, March 13 and no losses associated with the resolution of Silicon Valley Bank or Signature Bank will be borne by the taxpayer. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law. In addition, the Federal Reserve Board announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors. What does this mean for your bank?
Joint Statement by Treasury, Federal Reserve, and FDIC
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Watch for episode 87 of This Month in Banking to be released on Wednesday, March 29th, 2023, and a new episode on the last Wednesday of every month.
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