4min chapter

The Sound of Economics cover image

Europe's takeaway from recent banking turmoil

The Sound of Economics

CHAPTER

The US's Market Discipline on Depositors

The US took a step back on market discipline with an insurance and limited insurance of depositors of Silicon Valley Bank and Signature Bank in March. But even after that step back they are much further than the Eurozone again leaving aside the Danish cut case. So your zone practice has been in almost all cases that not only where all depositors reimburse but so where all senior creditors. That's not the case in the US and it would not the case on Silicon Valley Bank as President Biden and others have emphasized in their rhetoric.

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