The collapse of the state-chartered commercial bank Silicon Valley Bank on Monday, March 13, resulted in fear that neither regulators nor President Joseph Biden were able to quell the early chaos in the banking industry.

The KBW Bank Index, which monitors the performance of the twenty major banks in America, fell by around nine percent midday, putting tremendous pressure on the shares of several institutions. Regional bank tracking S&P exchange-traded fund also had a 9.25 percent decline.

During his Monday morning speech, Biden tried to calm the markets by saying that “Americans can have confidence that the banking system is safe” and that Treasury Secretary Janet Yellen and the bank regulators had taken “immediate” action to stop the spread of the SVB crisis to other small and medium-sized banks.


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