<Anchor>
In the United States, after Silicon Valley Bank, another bank went bankrupt. As anxiety grew, U.S. authorities rushed to protect all deposits at bankrupt banks.
First of all, this is our correspondent in Washington.
<Reporter>
Signature Bank,
headquartered in New York State, USA, has closed.
Just two days after the bankruptcy of a Silicon Valley bank, it failed to avoid a massive withdrawal crisis and bank runs by increasingly anxious customers.
With assets of 146 trillion won, it is the third largest in the history of the United States after Silicon Valley Bank in terms of bankruptcy.
The U.S. government immediately evolved.
We decided to protect all deposits in the two bankrupt banks and make them available for full withdrawal.
The funds will be financed by a deposit insurance fund created from fees paid by banks, and liquidity will also be supported by the Fed lending money to banks to prevent serial bankruptcies.
However, he drew the line that there would be no government-wide bailout to prevent "moral hazard."
[Janet Yellen/U.S. Treasury Secretary: The big banks were bailed out (during the 2008 financial crisis), but they're not considering it now. We don't have to do that now because there was financial reform then.]
There is a continual analysis that the bank failure is the result of a super-fast rate hike.
Liquidity, which had been flooded with ultra-low interest rates, quickly dried up, leading to bank failures.
As a result, the Fed's rate hikes, which again signaled a big step, are expected to slow down.
[Alexander Yokum/Analyst: Banks have had to pay more and more for financing because interest rates have continued to rise, whereas if rates go down, losses will decrease.]
Despite the evolution of the U.S. government, similar small and medium-sized banks are often expected to find it difficult to avoid further bankruptcies, making it difficult to predict how long the downturn will last.
(Video Interview: Park Eun-hae, Video Editing: Park Ki-duk)
▶ "Big step becomes difficult" Rather relieved?
U.S. Banks Further "Protect All Deposits" in Bankruptcy
2023-03-13T14:55:08.380Z
In the United States, after Silicon Valley Bank, another bank went bankrupt. As anxiety grew, U.S. authorities rushed to protect all deposits at bankrupt banks. In the United States, after Silicon Valley Bank, another bank went bankrupt. As anxiety grew, U.S. authorities rushed to protect all deposits at bankrupt banks. First of all, this is our correspondent in Washington. Signature Bank, headquartered in New York State, USA, has closed. Just two days after the bankruptcy of a Silicon Valley bank, it failed to avoid a massive with
Source: sbskr