caused by central banks raising rates more than they should have, and now we have banks particularly in trouble, particularly in the us, it has come from small banks who are less regulated than the big ones, so it is these small banks that are big worry. but the problem is how do policymakers stop this? now, as you ve mentioned this rise in interest rates, and here in europe, the eurozone s central bank also increased its interest rates what impact do you think that these interest rises will have on the banking sector? well, the big deal we saw with silicon valley was that they had actually invested and bought out huge amounts of government securities, and as interest rates rise, the value of those securities drops. but the other thing that happens with that bank was it was really a bank for tech companies, and tech companies have borrowed an awful lot of money at low interest rates, and then the interest rates start to rise,
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a group of big american banks has injected $30 billion into a smaller regional bank, first republic, which had been seen as at risk of failure. it comes as fears grow of a crisis in the global financial sector. shares in european banks hit a two month low, after the eurozone s central bank hiked interest rates by a half of 1%. us treasury secretary janet yellen insists the us financial system remains sound, despite a series of bank collapses. let s cross to los angeles, and speak to our north america correspondent, peter bowes. peter bring us up on what the latest is and what is going on. it clearly is a big boost for