Obviously DC and the entire financial world is focused on what to do about the failure of Silicon Valley Bank (SVB) on Friday and then Signature Bank on Sunday.  US officials worked over the weekend and before markets opened in Asia put together a package that protects all depositors at both banks and appears to have calmed markets.

Here is a link to the joint statement put out by Treasury, Fed and FDIC. 

There is sure to be more fallout from the bank failures and the government’s reaction; I would expect a hearing in the Republican controlled House Financial Services Committee and the Senate Banking Committee in coming weeks.  Question for regulators: was this the first social media run on a bank and what does that mean for policy?


With the failure of SVB and Signature Bank, and the quick response of the government, will the Fed follow this up with a rate increase at the next FOMC meeting on March 21-22? 

Events of the past few days seem to take the chance of a 50bps increase off the table. Before the failure of SVB, markets were focused on the semiannual Congressional testimony of Fed Chair Jay Powell.  During his initial testimony last Tuesday before the Senate Banking Committee the Chair struck a hawkish tone and clearly put 50bp...

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