U.S authorities are racing to contain a potential financial crisis, here’s what to know after banks fall to fed control

Editors Note: Over the weekend a series of banks in the United States (including Silicon Valley Bank, and Signature Bank among others) were forcibly closed by federal authorities and regulators against the backdrop of claims that a crisis is looming come Monday morning. In this article, we’re going to explain what this means how this may affect Americans in a matter of hours.

Beginning Thursday, SV Bank became the first bank to disappear after unrealized losses had made their way back to reality. Silicon Valley Bank primarily catered to the tech and entrepreneurial community leaving a ton of people and businesses in limbo. As of Sunday, the federal government is attempting to reassure folks that they will have access to their money come Monday.

Click here for an announcement from the Federal Reserve.

What to know?

The so-called ‘crises’ you might’ve seen people talking about on social media may be a crises or may not be a crises. SVB went under for failing to raise capital and a ton of unrealized losses this is where the so-called ‘crises’ began. About 24 hours following the announcement that the bank had been seized and shuttered, the government announced that SVB will not get their hands on federal bailout.

CONTEXT: We decided to mention this because there is allot of misinformation going around social media right now. There are many accounts pushing ‘2008’ (the U.S’s infamous crash) vibes all over again though it might be too early to tell.

According to The Guardian, by the time Sunday rolled around federal regulators formally shut the door over at Signature Bank making it the second major bank to fall in the country within the span of a week. In a statement shared by The Guardian, federal regulators attempted in nature to reassure the public that their funds would be available by Monday. Though regardless it’s worth mentioning that people are talking of what is known as a bank run.

NOTE: A bank run is something that people do pending essentially a financial collapse. If so many depositors run for their monies like they did over at SVB, banks will go down and they will go down fast. This is what occurred on Thursday when more than 42bn USD was withdrawn from SVB alone thereby sending the bank spiraling.

This is the second-largest financial collapse since 2008.