What you need to know about this week’s banking crisis
By Tobias Burns and Sylvan Lane
Markets and policymakers have been waiting for the other shoe to drop since the collapse of Silicon Valley and Signature banks last week, fearing a broader international banking crisis. Concerns about the health of First Republic Bank and slew of other regional powerhouses rattled markets for weeks and the troubles facing Credit Suisse added an international element to the meltdown…The reason the banking agencies intervened Sunday night … was that the risk was that the run would go from some banks to all banks. That risk is substantively quashed because of the Fed’s backstop.” said Karen Shaw Petrou, managing partner at Federal Financial Analytics. Even so, Petrou warned, “this is a situation that is driven by fear, and that brings out adrenaline, and depositors can’t fight, so they flee. Any additional sign of anything even a little scary could start this up again.”
https://thehill.com/business/3904015-what-you-need-to-know-about-this-weeks-banking-crisis/