The Fed Steps In to Prevent a Banking Sector Collapse

WSJ What’s News

The Wall Street Journal

News, Daily News

4.1 • 4.2K Ratings

🗓️ 13 March 2023

⏱️ 17 minutes

🔗️ Recording | iTunes | RSS

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Summary

A.M. Edition for March 13. U.S. regulators turned to emergency measures over the weekend to contain further potential fallout after the swift collapse of Silicon Valley Bank. WSJ finance editor Alex Frangos examines whether guaranteeing SVB deposits and taking control of a second bank will convince depositors their money is safe in U.S. banks. Plus, can a new submarine deal preserve the Western military lead over China? Luke Vargas hosts. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Join the Wall Street Journal for the WSJ Risking Compliance Forum happening online May 9th.
0:05.8	Together with experts, we'll unpack the latest Russia sanctions, data privacy laws, climate risks, and more.
0:12.0	You'll take away a playbook, a practical advice that you can use and implement on day one.
0:17.1	Register now at WSJ.com, slash risk, and save 20% on your ticket using code podcast.
0:23.6	The Fed moves to stem a U.S. banking crisis.
0:33.3	All these regulators lived through 2008, and so Silicon Valley Bank is not Lehman Brothers,
0:39.5	but it's still pretty big, and they felt that better to be safe than sorry.
0:43.5	Plus, record Aramco profits boost the Saudi government's ambitions, and can a submarine deal
0:50.4	preserve the West's lead over China. It's Monday, March 13th. I'm Luke Vargas with the Wall Street
0:56.7	Journal, and here's the AM edition of What's News, the top headlines and business stories moving your
1:03.2	world today.
1:10.8	We begin today in the United States where federal regulators have turned to emergency measures
1:16.2	in the hopes of preventing depositors from pulling money from lenders after last week's
1:21.6	rapid collapse of Silicon Valley Bank. Over the weekend, the Treasury Department,
1:26.9	Federal Reserve, and Federal Deposit Insurance Corporation guaranteed all SVB deposits,
1:33.5	and took control of signature bank, marking the third bank failure in the space of a week.
1:40.7	There is a lot to get to here, and no better person to help break it all down than
1:44.6	journal finance editor Alex Frank goes, okay, Alex, break this down for us. What did federal regulators
1:51.3	do over the weekend, and just how significant is this? Basically, the Fed and other regulators
1:56.2	wanted to stop this bank run that started last week and hit Silicon Valley Bank, which collapsed
2:01.3	on Friday, and it looked over the weekend like there were other dominoes to fall, and signature
2:06.0	bank seems to be one of them. And the main thing that the Fed and the others are trying to do is
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