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.
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.
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.