The United States banking industry is once again in the spotlight after federal regulators seized two banks over the weekend, one of which was based in New York. The bank failures are the second largest in US history, with many people concerned about the impact on their financial futures.
On Sunday, state regulators took control of New York-based Signature Bank. This came shortly after similar action was taken against California-based Silicon Valley Bank. New York Governor Kathy Hochul has reassured the public that the state’s banking community is stable and that there is no evidence that other institutions are facing similar problems. She urged New Yorkers not to panic and withdraw their deposits, as this could create instability in the system.
President Joe Biden has also moved to calm the situation, promising that all customers who had deposits in the two failed banks will be protected and have access to their money as of today. However, many Americans are still feeling anxious about their finances, with some drawing comparisons to the 2008 financial crisis.
Financial advisors are urging people to diversify their assets and avoid keeping too much money in one bank. Chuck Wade, senior vice president at Brighton Securities, explained that deposits at any one bank are insured up to $250,000. He advised those with larger deposits to consider spreading their money across multiple banks to reduce the risk.
President Biden has laid the blame for the bank failures on the Trump Administration, which he says rolled back regulations designed to prevent such incidents. He has promised to call on Congress to strengthen banking regulations to prevent similar failures from happening again in the future.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected].