The United States reacted swiftly after the spectacular bankruptcy of Silicon Valley Bank (SVB) at the end of last week, to avoid any bank panic. As of Sunday, they announced that they would guarantee all withdrawals of deposits from the bank, allow access to deposits from the Signature Bank, which was also closed in the process, undertake to lend funds to other banks which would need to honor their customers’ withdrawal requests…
Economy: the new faces of an announced crisis
US President Joe Biden wanted to be reassuring on the morning of Monday March 13, assuring that “Americans can be confident that the banking system is sound”. Will this responsiveness succeed in stemming the crisis that is happening? While the financial markets were rocking sharply in the United States and Europe on Monday, Gregory Daco, chief economist of EY-Parthenon, the strategy consulting arm of the financial audit firm Ernst & Young, believes that this bankruptcy nevertheless risks having “a snowball effect on all economic activity”.
With the fall of the Silicon Valley Bank, are we on the eve of a new financial crisis like that of 2008?
Gregory Daco. For the moment, this is not the scenario that seems to be taking shape. It is tempting to draw parallels with 2008, but the current situation is different. Contrary to what happened during the financial crisis, the banks in question today
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