Bank stocks tumbled across global markets today, despite as President Joe Biden’s vow to take action to ensure the safety of the US banking system following the sudden failure of Silicon Valley Bank and Signature Bank.
Biden’s efforts to reassure markets and depositors came after emergency US measures to bolster banks by granting them access to additional funding failed to assuage investor concerns about possible contagion to other global lenders.
The White House reported that the Treasury Department is collaborating with regulators to determine the next actions.
As investors feared additional bank failures, major US banks lost approximately $90 billion in market value on Monday, bringing their three-day loss to nearly $190 billion.
Regional banks were severely hit. First Republic Bank, Western Alliance Bancorp, and PacWest Bancorp all saw their stock prices decline by more than 60 percent following the announcement of new financing.
After the largest US bank failure since the 2008 financial crisis, Vice President Biden stated that “Americans can have confidence that the banking system is safe,” and also promised stricter regulation.
He stated, “Your deposits will be there when you need them,”
On Monday, SVB customers will have access to all of their deposits, regulators will open a new facility to give banks access to emergency funds, and the Federal Reserve will make it simpler for banks to borrow from it in times of crisis.