The Biden Administration's Guarantee on Bank Deposits Is Under Pressure

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The Biden administration is trying to restore calm. It's also under pressure to expand the U.S. government's guarantee on bank deposits. Currently, it ensures up to $250,000. This would have potentially huge ramifications in terms of how people looked at the safety of banks and how banks are run.

UBS agreed to buy Credit Suisse for $3.25bn after a frantic weekend of negotiations brokered by Swiss regulators, leading central banks have taken fresh measures to improve global access to dollar liquidity, and the Biden administration is under pressure to call for an expansion of the federal guarantee on bank deposits. Plus, the FT’s Andrew Edgecliffe-Johnson explains what lessons start-ups are taking away from the collapse of Silicon Valley Bank.

Mentioned in this podcast:

UBS agrees to buy Credit Suisse for more than $3bn

White House pressed to expand deposit guarantee to steady banks

Central banks announce dollar liquidity measures to ease banking crisis

Start-ups learn the hard way how to manage cash after SVB’s collapse

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