The Washington PostDemocracy Dies in Darkness

After SVB collapse, bank stocks slide despite government intervention

Before departing the White House on March 13, President Biden said “Americans can have confidence” in U.S. banks after Silicon Valley Bank's crash last week. (Video: The Washington Post, Photo: Demetrius Freeman/The Washington Post)

President Biden sought to assure the nation Monday that “the banking system is safe” following the collapse of Silicon Valley Bank last week and Signature Bank in New York on Sunday.

“Your deposits will be there when you need them,” Biden said from the White House.

The declaration did little to calm investors’ fears: Bank stocks took heavy losses, though the main financial indexes rebounded late in the day to finish mostly flat.

Officials had announced that depositors with money at the failed banks would be paid back in full and able to access their money Monday morning. Biden also said he is asking Congress and regulators to take steps to make similar episodes less likely.

Here are some significant developments:

  • The Federal Reserve announced that it was creating a lending facility for the nation’s banks, designed to buttress them against financial risks caused by Friday’s collapse of SVB.
  • Stock exchanges suspended trading on several midsize and regional banks on Monday, including PacWest Bancorp and First Republic Bank. Large lenders like Wells Fargo, Capital One and Bank of America also traded sharply lower.