The bankruptcy of two major banks in the United States has led to economic turmoil

The bankruptcy of two major banks in the United States has led to economic turmoil.

downgrade of ratings by Fitch and Moody's throughout the country, and negative trends in the US stock market, as well as impacts in European and Asian markets. Despite efforts by President Biden to revive the system, there is a continued trend of large-scale withdrawals of funds by investors from banks.

 The bankruptcy of two major banks in the US, Sealy Continental Bank and Signature Bank, has led to economic turmoil, downgrade in ratings by Fitch and Moody's, negative trends in the US stock market, and effects in European and Asian markets. Despite President Biden's efforts to revive the economy, investors are withdrawing large sums of money from banks, leading to a financial crisis in the country. Communities and other banks in different states, including the wealthiest individuals in Boston, Massachusetts, are experiencing financial difficulties, and people are rushing to withdraw their money or buy precious metals. This situation is being called the worst economic crisis in US history, and it has led to a downgrade in ratings for all US banks by global rating agencies Fitch and Moody's, as well as negative trends in the stock market, with a downward trend observed from New York to California. Sealy Continental Bank holds almost $200 billion in assets and is associated with many technology companies and business personalities, but when people suddenly started withdrawing large amounts of money, the bank declared bankruptcy. The Federal Reserve, the US government's financial regulatory agency, took control of the bank's assets, but fear and panic have spread throughout the country.

The report talks about the recent banking crisis in the US, which was triggered by the sudden failure of two major banks, Silicon Valley Bank and Signature Bank, due to the "corona crash." This led to concerns about the stability of the US banking system, and the government took extraordinary measures to prevent a potential banking crisis.

The report also mentions that experts believe that if China, which holds the most US Treasury bonds, were to sell them in the market, the situation would become even more precarious.

Furthermore, the Federal Reserve System has announced a new program to ensure that banks can meet their customers' needs even in the event of a sudden bank failure. The government has taken these measures to prevent another banking crisis, which could have far-reaching consequences, including affecting other financial institutions as well.

Regulatory authorities responsible for banks had been trying to find a buyer for the failed banks throughout the previous week. This has been the second-largest failure of a bank in history, and while efforts to find a buyer were unsuccessful on Sunday, the severity of the banking crisis was displayed to the public.

Due to the financial turmoil on the other side, US President Biden had to come forward himself. While emphasizing the need for stricter regulations to prevent future banking crises, he assured American citizens that their money is safe after the collapse of Silicon Valley Bank (SVB). Following the bankruptcy of SVB and Signature Bank and their federal seizure, in a brief televised address from the White House, Biden said that Americans should trust that their banking system is secure and their money is there when they need it. Biden stated that the government is making sure that consumers who have money deposited in affected banks receive their money back without any harm to taxpayers. This money will be fully covered by the deposits that the banks make in deposit insurance.

Challenging Congress to enforce stricter regulations, President Biden said that the hard measures introduced after the 2008 financial crisis were repealed by their Republican predecessor, Donald Trump. He said that I will ask Congress and banking regulators to tighten banking rules so that the possibility of such banking crises is reduced. He stated that we must take full account of what has happened and why so that those responsible can be held accountable. He said that taxpayers are not responsible for covering the losses and those responsible must bear the consequences.