Clark Howard: “The fear is not warranted” over bank failures

Jacksonville, Fl — The U.S. government is taking extraordinary steps to stop a potential banking crisis following the historic failure of Silicon Valley Bank.

The Treasury Secretary is instructing the FDIC to guarantee SVB customers will have access to all of their money.

PODCAST: Clark Howard on historic failure of Silicon Valley Bank

WOKV Consumer Warrior Clark Howard says this situation is nothing like 2008. That’s when the federal government bailed out the biggest banks and their stockholders and designated them as systematically important to the country.

“What’s going to happen though now with this backstop is people are not going to freak out and they’re not going to worry about the safety of their money.”, Clark said on Sunday night.

DEPTH: US, UK try to stem fallout from Silicon Valley Bank collapse

Regulators closed Silicon Valley Bank amid a run on the bank Friday, which was the second-largest U.S. bank failure behind the 2008 failure of Washington Mutual. They also announced Sunday that New York-based Signature Bank was being seized after it became the third-largest bank failure in U.S. history.

Rich Jones

Rich Jones, News 104.5 WOKV

Rich Jones is the Host of Jacksonville’s Morning News. Rich joined WOKV in October 2006. Rich is involved in many community organizations and causes. Rich and his wife, Noelle, have three children: Avery, Harper and Austen.