First came the bank run, then the demise, of California-based Silicon Valley Bank two weeks ago. Soon after, New York-based Signature Bank also collapsed.
These back-to-back episodes — the second- and third-largest bank failures in U.S. history, respectively — compelled American officials to act publicly to prevent a broader financial crisis.
“We are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system,” officials from the U.S. Treasury, Federal Reserve and Federal Deposit Insurance Corporation (FDIC), said in a joint statement after the headline-making bank failures.
These actions included guaranteeing all of the failed banks’ deposits, including those far exceeding FDIC deposit-insurance limits.
Deposit insurance protects
