Large bank in Silicon Valley crashes, has assets seized

Friday’s failure of Silicon Valley Bank marked America’s biggest financial institution crash since the demise of Washington Mutual in the 2008 recession, the Associated Press reported. The crash happened as concerned depositors began withdrawing funds. Regulators with the Federal Deposit Insurance Corp. seized the bank’s assets on Friday. Customers with insured deposits will start receiving their funds on Monday, and then authorities will sell the rest of the bank’s assets to make other depositors whole. 

Will there be a market crash like the 2008 Great Recession? The White House said Treasury Secretary Janet Yellen was watching the situation closely and that America’s banking system is healthier than during the Great Recession. Cecilia Rouse, chair of the White House Council of Economic Advisers, said that recession-era reforms have made the U.S. banking system more resilient. The failure of a second bank, Signature Bank in New York city, was announced Sunday night in a joint statement by the Treasury, Federal Reserve, and FDIC.

Dig Deeper: Read Jerry Bowyer’s column in WORLD Opinions about experts’ no-confidence vote for America’s 2023 economy.