Did the Banks Just Break?
Real Vision: Finance & Investing
00:00
Do You Think That the Fed Has the Fed?
The problem of Silicon Valley Bank and other small banks, actually started probably around that period when the market realized that it was a really good bet to add more risk all the time. Right now, as you see in the Federal Reserve press release, what they're doing is that this the securing the deposits of these two banks is going to be covered by a higher level of assessment from the banking system. If you do it with the entire financial system of the United States, that obviously would make it impossible now to cover it from that perspective. It's very difficult to announce that for a very simple reason. About a third of all of the US banking system deposits are uninsured.
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