The Federal Deposit Insurance Corporation is advocating for an increase in the deposit insurance limit for business payment accounts following the three recent bank failures.
Silicon Valley Bank’s downfall sent waves of panic through the financial system in early March, setting off a chain reaction of chaos with which regional banks are still grappling.
It may seem surprising that First Republic, a midsize bank catering to wealthy clients in coastal states, became such a danger to the American banking system that the government had to cudgel the industry to stage an intervention.
In the wake of Silicon Valley Bank’s demise, Florida Gov. Ron DeSantis pointed fingers at several culprits, including the company’s diversity initiatives and federal regulators who he said “always seem to whiff” at preventing a financial crisis.
“Bailout” became a curse word in American politics following the 2008 global financial crisis, fueling backlash among people who felt the risks and potential consequences of capitalism didn’t apply to big corporations or the wealthy.
