Rock-bottom stock prices at midsize banks are fueling concerns that depositors could get spooked, and short sellers are drawing much of the blame. But their persistence may be exposing a broader lack of confidence in the industry.
Since the sudden collapse of Silicon Valley Bank on March 10, unstable deposit funding has roiled the banking industry. Ideas on how to reestablish confidence include providing a temporary guarantee for all deposits, raising the deposit insurance limit and reviving an expired program that helped quell market panic in 2008.
In a surprising and ground-breaking Joint Statement issued late Sunday afternoon, March 12, 2023, the U.S. Department of the Treasury (Treasury), the Board of Governors.
Since the sudden collapse of Silicon Valley Bank on March 10, unstable deposit funding has roiled the banking industry. Ideas on how to reestablish confidence include providing a temporary guarantee for all deposits, raising the deposit insurance limit and reviving an expired program that helped quell market panic in 2008.