Markets on alert after US banks join forces to rescue First Republic – business live

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Global shares rise as $30bn lifeline for US bank eases fears of imminent collapse and US Treasury Secretary Janet Yellen says US banking system ‘is sound’

said last night that “our [the US] banking system is sound and that Americans can feel confident that their deposits will be there when they need them”.

This week’s actions demonstrate our resolute commitment to ensure that depositors’ savings remain safe. But she denied that emergency action after the two large bank failures meant that there was a blanket government guarantee for all deposits. In the case of SVB and Signature, she told the US Senate Finance Committee that

the chances of contagion that other banks might be regarded as unsound and suffer runs, seemed extremely high, and the consequences would be very serious.Credit Suisseto prop up the beleaguered lender. Shares plummeted as much as 30% to record lows on Wednesday after the bank’s largest shareholder, Saudi National Bank, said it was unable to invest more money because of regulatory restrictions limiting its holding to below 10%. Credit Suisse is one of 30 banks globally deemed too big to fail.

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The experts have said it’s going to be fine so the science is settled. Nothing to worry about.

She'll be right mate '$30bn lifeline for US bank eases fears of imminent collapse'

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