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The First Republic Bank shares plummeted
The First Republic Bank has said that it has experienced “unprecedented” deposits outflows since last year’s failure of Silicon Valley Bank and Signature Bank. This resulted in an outflow of $119 billion from other small banks. On Tuesday, First Republic said that deposits have stabilized, but investors remained concerned about the bank’s viability.
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There are hearings on bank failures in the Senate
Senator Sherrod Brown, the Chairman of the US Senate Banking Committee, has called for a probe into the failure of Silicon Valley Bank and Signature Bank. “It’s critical…to get to the bottom of how…both banks collapsed so we can maintain a strong banking system, protect Americans’ hard-earned money, and hold those responsible accountable, including the…
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Will the global banking crisis lead to a recession?
The liquidity crisis at Silicon Valley Bank led to the bankruptcy of the bank in March last year, leading to the closure of the California-based institution. The bank’s failure sent waves of panic through the financial system in early March. The US Federal Reserve is responsible for about $140 billion in guarantees for all Silicon…
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If there is a requirement to protect depositors, the U.S. is ready to do so
US Treasury Secretary Janet Yellen has said depositors at small banks might be eligible for the same kind of emergency government aid extended to customers at two regional banks that failed this month. Her statement comes nine days after government announced measures to guarantee all deposits at Silicon Valley Bank and Signature Bank. Deposit insurance…
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The weekend Silicon Valley came to a crashing halt
Silicon Valley Bank (SVB) and Signature Bank were closed by the US government last month after they lost billions of dollars in deposits. SVB’s insured deposits with the Federal Deposit Insurance Corp (FDIC) stood at about $60 billion while Signature’s insured deposits amounted to $85 billion. The FDIC said SVB’s depositors could get back their…