Citigroup Inc CEO Jane Fraser on Wednesday expressed optimism in the nation's banking system despite the failures of Silicon Valley Bank and Signature Bank.
Independent Institute senior fellow Judy Shelton reacts to the banking failure and gives her take on the Fed's rate hikes on 'Making Money.'and Signature Bank earlier this month are not a sign of wider problems within the banking system. , Fraser said the "banking system is pretty sound," and large and regional banks are well-capitalized.
FILE: itigroup CEO Jane Fraser testifies before a Senate Banking, Housing, and Urban Affairs hearing on"Annual Oversight of the Nation's Largest Banks", on Capitol Hill in Washington, U.S., September 22, 2022.. This is a situation where it's a few banks that have some problems, and it's better to make sure that we nip that in the bud," she said.
Silicon Valley Bank, the nation’s 16th-largest, failed on March 10 after making risky bets in the bond market. Two days later, regulators closed New York-based Signature Bank, which had gotten involved in cryptocurrencies. A week later, long-troubled Swiss bank Credit Suisse, was taken over by rival UBS Group. Amid these failures, America’s biggest lenders – including Citi – agreed to deposit $30 billion in beleaguered First Republic Bank to give it time for restructuring. The rescue efforts failed to stop a 15% plunge in First Republic's shares on Wednesday.
Fraser said the quick action by U.S. regulators to stop the bank runs that toppled Silicon Valley Bank and Signature Bank helped to stop the problem from worsening.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Citigroup CEO declares 'this is not a credit crisis' after U.S. bank failuresCitigroup Inc CEO Jane Fraser on Wednesday expressed confidence in U.S. banks after a series of closures rattled investors and fueled turmoil in global financial markets.
Read more »
Senators call on former Silicon Valley Bank, Signature Bank CEOs to testifySens. Sherrod Brown and Tim Scott said the former CEOs of the fallen banks should 'answer for' their banks' 'downfall' in Senate testimony.
Read more »
How Twitter panic took down Silicon Valley Bank in daysInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Read more »
WSJ News Exclusive | How the Last-Ditch Effort to Save Silicon Valley Bank FailedAs Silicon Valley Bank raced to obtain emergency funding, SVB depositors drained their accounts via smartphone apps. The depositors won.
Read more »
Silicon Valley Bank Collapse: Snopes Fact-Checked These RumorsAnd, no, 'The Simpsons' did not predict this latest U.S. crisis.
Read more »
Fight Brewing Between Silicon Valley Bank's Former Parent Company and FDICA legal fight is ramping up between the FDIC and the former parent company of Silicon Valley Bank. SVB Financial said the banking regulator took 'improper actions' and can't access its money held at its former unit. Dov Kleiner, partner at Kleinberg, Kaplan, Wolff & Cohen, P.C., discusses the key takeaways from the bankruptcy hearing. Plus, reactions to Bloomberg reporting Silicon Valley Bank loans to insiders tripled to $219 million before being overtaken by regulators.
Read more »