Following the collapses of Silicon Valley Bank (SVB) and Signature Bank, customers across the United States pulled a staggering sum from their checking accounts, totaling about $98.4 billion in the week leading up to March 15. This figure was reported by CNBC and underscored the rapid shift in consumer confidence in a highly stressed period for the banking sector.
The drama unfolded in a closed session of the Financial Stability Oversight Council, with Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell in attendance. After the meeting, participants affirmed that the national banking system remains steady and capable of weathering turbulence, even as some institutions face heightened pressure. The post-meeting statement emphasized resilience and the ongoing readiness of regulators to address evolving conditions. (CNBC)
In the same time frame, the Federal Deposit Insurance Corporation disclosed that SVB, once a major lender with assets ranking around sixteenth in the United States, had ceased operations. Analysts noted that SVB marked the largest bank failure in the United States in roughly 15 years, highlighting the scale of the disruption facing the financial system. (FDIC report)
New York state authorities also acted with urgency, closing Signature Bank due to systemic risks that threatened broader stability. In a subsequent development, the FDIC announced that New York Community Bancorp would acquire most of Signature Bank’s assets, a move aimed at preserving customer access to deposits and continuing lending capacity for the region. (FDIC press release)
The sequence of events has prompted ongoing discussions about risk management, regulatory oversight, and the capacity of the U.S. banking network to absorb shocks. Analysts and policymakers have stressed the importance of strong capital cushions, robust liquidity, and swift action to protect depositors while maintaining confidence in the financial system. Although stress tests and supervisory measures continue to evolve, the core message from officials remains clear: the system is designed to endure considerable stress without broad, systemic collapse. (CNBC, FDIC)