Bloomberg has published an article outlining the possibilities for all bank deposits to be guaranteed if the crisis spreads.
In the article it is read that: ”US officials are considering how to temporarily extend Federal Deposit Insurance Corp. coverage to all deposits, a move called for by a coalition of banks that argues it is necessary to head off a potential financial crisis.”.
”Treasury Department staff are reviewing whether federal regulators have sufficient emergency authority to Temporarily insure deposits above the current $250,000 limit on most accounts without the formal consent of a deeply divided Congress, according to people with knowledge of the talks.”
Meanwhile, US regional banks remain concerned. First Republic holdings plunged as much as 50% on Monday and closed down 39%. Besides, the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve and the Swiss National Bank They are taking coordinated measures to improve the provision of liquidity through permanent agreements of swap lines of liquidity in dollars.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.