The Latest Breaking News from Silicon Valley Bank

Congress is trying to figure out how best to respond to the abrupt failure of two U.S. banks

After Silicon Valley Bank collapsed, shaking world markets, Nobel economics prize winner Joseph Stiglitz says US authorities "did the right thing" by providing federal money to protect deposits. But the economist also says the financial system needs a rethink to properly bring it into the digital era.

RECAP: Asian equities advanced yesterday after a rescue package for First Republic Bank fuelled a rebound in US shares. Even so, the MSCI gauge of Asian shares recorded a second weekly loss after the recent turbulence in the global banking sector.

The Stock Exchange of Thailand experienced its most volatile week of the year, with gains and losses of more than 40-50 points, as did global bourses as a bank run led to the collapse of Silicon Valley Bank (SVB) and eroded confidence in US lenders.

When Silicon Valley and Signature banks failed in early March 2023, government regulators rushed in to guarantee deposits and protect bank customers. Under current banking regulations, though, there was no obligation for the government to step in.

The embattled lender's dividend cut was just the latest sign of instability in the banking industry.

The sudden collapse of Silicon Valley Bank left its investors reeling, shocked and unsure of what had happened to their funds. SVB was one of the top 20 banks in the United States, and many had trusted their money with the bank, unaware of the crisis that was brewing.

WASHINGTON — President Joe Biden on Friday urged Congress to pass legislation that would give the Federal Deposit Insurance Corporation authority to “claw back” executive pay at failed banks and to bar the executives from jobs in the banking industry.

It's a familiar cycle: Boom, bust, then bailout. Now everyone is wondering where the financial regulators were