Several overseas banks are also suffering collapse, joining the issue affecting U.S. institutions.

This week’s failure of Silicon Valley Bank in California was swiftly followed by that of Signature Bank in New York.

Both banks focused on corporate transactions and the technology sector, especially start-ups.

Although certain IT businesses in China were unable to obtain finance in their native country, the SVB granted money to Chinese companies. Both banks worked extensively with virtual currencies.

Concerned that bank runs would rapidly grow and negatively harm the banking system, the government took steps to reassure the public.

Typically, banks are insured up to $250,000 per customer, but the U.S. government declared that all losses would be paid.

AP said that the Treasury Department and the Federal Reserve announced that “All SVB clients would be protected and be able to access their mone.”

CBS reported that the FDIC stated on Sunday that New York Community Bancorp will now take over Signature Bank. The failure of Signature Bank is considered the third-largest in U.S. history.

Meanwhile, worldwide banking news joins the U.S. turmoil.

Credit Suisse has failed in Switzerland. Swiss banking has always had a reputation as the most stable, but UBS will acquire Credit Suisse for almost $3.25 billion.

UBS describes itself as “a global firm providing financial services in over 50 countries”. UBS was once known as Union Bank of Switzerland; after merging with Swiss Bank Corporation, it became known as UBS.

Europe and Asia’s banks are seeing the scenario unfold as shock waves ripple across the world. It was announced last night that the leading central banks of the Western world had joined forces to give insurance against a financial system collapse.

On Friday, the World Economic Forum reported:

“Stock markets subsequently fell around the world, with banking stocks seeing particularly large falls. The turmoil in banking stocks also triggered drops in yields for US Treasuries and Eurozone bonds, and gold prices renewed their recent rally as investors sought safe havens.”

In an unusual Sunday announcement, The Federal Reserve posted this last night:

The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing a coordinated action to enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements.

More on this story via The Republic Brief:

To improve the swap lines’ effectiveness in providing U.S. dollar funding, the central banks currently offering U.S. dollar operations have agreed to increase the frequency of 7-day maturity operations from weekly to daily. These daily operations will commence on Monday, March 20, 2023, and will continue at least through the end of April. CONTINUE READING…