A swift intervention by the US Federal Reserve has kept most banks on their feet, but September/October is often the time when financial crises come to a head.
The ‘big four’ accounting firms dominate audits of company financial reports.
Andreas Prott / Alamy Stock Photo
Social media provides both a forum for communication and a public signal about what a bank’s customers believe. That means Twitter can facilitate coordination in real time.
Another U.S. bank bit the dust.
AaronP/Bauer-Griffin/GC Images via Getty Images
The cause of banking crises since the debacle in the 1980s remains unchanged. Incentives encourage executives to take excessive risks, with few consequences if bets turn bad. It’s happening again.
Democratic Sen. Elizabeth Warren of Massachusetts is a big proponent of banking reforms.
Chip Somodevilla/Getty Images
Financial crises are inevitably followed by legislation to restructure the banking system, and the ongoing problems with bank stability are likely to be no exception.
Thousands of banks failed in the Great Depression.
Bettmann via Getty Images
Crises fueled by bank runs, starting with the Great Depression, have had something in common: Unexpected changes spur bank failures, followed by general panic and then large-scale economic distress.
Confidence in banking is hard-earned and easily shocked. This makes individual banks and the banking sector susceptible to knock-on effects from other institutions.
A real payload.
tiero/iStock via Getty Images Plus
The failure of Silicon Valley Bank has raised questions about some of the consequences when the government steps in to protect the depositors of troubled banks.
Big interest rate hikes could cause more market turmoil, while doing too little could have the same effect.
Outside Signature Bank headquarters in New York City. Regulators closed the bank on March 12, 2023.
Lokman Vural Elibol/Anadolu Agency via Getty Images
The recent collapse of three banks has lawmakers debating whether stricter regulations will prevent other banks from meeting the same fate.
Silicon Valley Bank, the sixteenth-largest bank in the U.S., collapsed on March 10, 2023 after customers tried to collectively withdraw $42 billion in a single day.
(AP Photo/Jeff Chiu)
The collapse of Silicon Valley Bank serves as a reminder of the importance of robust risk management, sound regulatory oversight and effective liquidity management.
Not for turning: ECB President Christine Lagarde.
Sueddeutsche Zeitung Photo
The banking crisis has been caused by the interest rate rises, and further hikes were supposed to be a no no.
The U.S. Federal Deposit Insurance Corporation seized the assets of Silicon Valley Bank on March 10, 2023, marking the largest bank failure since Washington Mutual during the height of the 2008 financial crisis.
(AP Photo/Jeff Chiu)
The Fed, Treasury and FDIC acted swiftly to protect depositors and stem any panic, but anxiety continues to grow about the state of the global financial system.
Fed Chair Jerome Powell has a tricky job in balancing inflation fears with recession fears.
AP Photo/Jose Luis Magana
The latest consumer prices report shows cost of living is still rising far above the Fed’s target. But don’t expect monetary policymakers to aggressively hike rates.