Stock Market News

US weighs new fund to backstop deposits if more banks fail, Bloomberg News says

2023.03.11 20:44


© Reuters. FILE PHOTO: The U.S. Federal Reserve building is pictured in Washington, March 18, 2008. REUTERS/Jason Reed

(Reuters) – The U.S. Federal Reserve and the Federal Deposit Insurance Corp are weighing the creation of a fund that would allow regulators to backstop more deposits at banks that run into trouble in the wake of Silicon Valley Bank’s collapse, Bloomberg News reported on Saturday.

Regulators discussed the new special vehicle in conversations with banking executives and hope such a measure would reassure depositors and help contain any panic, the report said, citing people familiar with the matter.

The new vehicle is part of the agency’s contingency planning as panic spreads about the health of banks focused on the venture capital and startup communities, the report added.

The U.S. central bank and FDIC did not immediately respond to a Reuters request for comment.

Earlier on Saturday, U.S. President Joe Biden spoke with California Governor Gavin Newsom about the SVB failure and the efforts to address the situation.

Silicon Valley Bank imploded after depositors, concerned about the lender’s financial health, rushed to withdraw their deposits. The frenetic two-day run on the bank blindsided observers and stunned markets, wiping out more than $100 billion in market value for U.S. banks.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 89,134.88 10.77%
ethereum
Ethereum (ETH) $ 3,366.62 5.70%
tether
Tether (USDT) $ 1.00 0.05%
solana
Solana (SOL) $ 222.31 5.96%
bnb
BNB (BNB) $ 643.48 2.39%
dogecoin
Dogecoin (DOGE) $ 0.342341 24.61%
usd-coin
USDC (USDC) $ 0.999931 0.09%
xrp
XRP (XRP) $ 0.618844 5.22%
staked-ether
Lido Staked Ether (STETH) $ 3,367.46 5.81%
cardano
Cardano (ADA) $ 0.61056 3.66%
shiba-inu
Shiba Inu (SHIB) $ 0.000028 7.68%
tron
TRON (TRX) $ 0.167672 2.30%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,986.03 6.16%
avalanche-2
Avalanche (AVAX) $ 35.33 10.61%
the-open-network
Toncoin (TON) $ 5.47 3.67%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 88,803.79 10.65%
weth
WETH (WETH) $ 3,368.86 5.85%
bitcoin-cash
Bitcoin Cash (BCH) $ 474.09 8.32%
chainlink
Chainlink (LINK) $ 14.75 3.74%
sui
Sui (SUI) $ 3.21 5.96%
polkadot
Polkadot (DOT) $ 5.51 5.97%
aptos
Aptos (APT) $ 13.76 26.25%
leo-token
LEO Token (LEO) $ 7.38 8.57%
near
NEAR Protocol (NEAR) $ 5.48 16.39%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,545.35 5.88%
litecoin
Litecoin (LTC) $ 79.85 4.66%
crypto-com-chain
Cronos (CRO) $ 0.208461 69.64%
uniswap
Uniswap (UNI) $ 9.26 1.16%
pepe
Pepe (PEPE) $ 0.000013 6.26%
usds
USDS (USDS) $ 1.00 0.03%
bittensor
Bittensor (TAO) $ 598.96 7.13%
internet-computer
Internet Computer (ICP) $ 9.40 5.03%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.55 7.11%
kaspa
Kaspa (KAS) $ 0.152392 1.15%
ethereum-classic
Ethereum Classic (ETC) $ 24.32 5.46%
stellar
Stellar (XLM) $ 0.113922 5.06%
dai
Dai (DAI) $ 0.999771 0.11%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.423016 3.66%
blockstack
Stacks (STX) $ 2.09 15.69%
whitebit
WhiteBIT Coin (WBT) $ 21.69 4.50%
dogwifcoin
dogwifhat (WIF) $ 3.07 13.32%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.17%
aave
Aave (AAVE) $ 193.52 2.09%
monero
Monero (XMR) $ 158.10 2.60%
okb
OKB (OKB) $ 47.63 10.99%
render-token
Render (RENDER) $ 6.95 23.49%
mantle
Mantle (MNT) $ 0.800614 2.17%
arbitrum
Arbitrum (ARB) $ 0.664774 6.11%
injective-protocol
Injective (INJ) $ 26.75 5.83%
filecoin
Filecoin (FIL) $ 4.35 2.49%