The recent bankruptcy in Silicon Valley has shaken confidence in small and medium-sized financial institutions in the US. The fiasco also has something to do with Donald Trump – his deregulation measures might be rolled back. Regulators and rating agencies have failed anyway.
After the bankruptcy of the Silicon Valley Bank, shares in the First Republic Bank in New York collapsed on Monday.
“Whatever is necessary for the security” – with these words, American President Joe Biden on Monday doubled the general trust in the safety of bank deposits with disguised rescue measures in relation to the efforts of the Treasury Department, the Federal Reserve and the Deposit Protection Fund over the weekend to restore. It was cracked following California’s Silicon Valley bank went bankrupt in practically two days last week and it initially looked as if many investors would lose a large part of their wealth parked there.
