Photo by AP Photo/Jeff Chiu
Should Federal Government Bail Out Banks?
Thursday, March 16, 2023
The closure of three large banks sparked concern about the economy across America last week. Depositors at both Silicon Valley Bank and Signature Bank will see their money guaranteed by the federal government.
At the start of this week, the Secretary of Treasury, Federal Reserve Board and FDIC released a joint statement regarding the issue.
"After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors," read the statement.
The statement also assured no losses will be borne by the taxpayer with a similar systemic risk exception applied for depositors at Signature Bank, New York, New York.
We want to know what you think. Do you think it is the responsibility of the federal government to bail out failed banks? Take the survey linked here and let us know.