The US reacted quickly after the stunning bankruptcy of Silicon Valley Bank (SVB) last weekend, to avoid any bank panic. From Sunday, they announced that they would guarantee all deposit withdrawals from the bank, allow access to deposits from Signature Bank, which was also closed in the process, and pledge to lend money to other banks that will need to honor their customers. Pull requests…
The Economy: The New Faces of a Declared Crisis
US President Joe Biden wanted to be reassuring on the morning of Monday, March 13, confirming this Americans can be confident that the banking system is sound.. Will this response succeed in stopping the crisis that is taking place? As financial markets shook sharply in the US and Europe on Monday, Gregory Daco, chief economist at EY-Parthenon, the strategic advisory arm of auditing firm Ernst & Young, believes this bankruptcy nonetheless carries risks. Snowball effect on all economic activities.
With the fall of the Silicon Valley bank, are we on the eve of a new financial crisis like the one of 2008?
Gregory Dako. Right now, that is not the scenario that appears to be taking shape. It’s tempting to draw comparisons to 2008, but the current situation is different. Unlike during the financial crisis, the banks involved today
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