Trending Now
We have updated our Privacy Policy and Terms of Use for Eurasia Group and its affiliates, including GZERO Media, to clarify the types of data we collect, how we collect it, how we use data and with whom we share data. By using our website you consent to our Terms and Conditions and Privacy Policy, including the transfer of your personal data to the United States from your country of residence, and our use of cookies described in our Cookie Policy.
{{ subpage.title }}
Ian Explains: Banking turmoil and the panic pandemic
There’s talk of another surge. We're talking, of course, about…banking.
Much of what’s driving today’s banking drama—resulting in the most significant government intervention since the Great Recession—is a virus more contagious than COVID-19: panic, Ian Bremmer explains on GZERO World.
It all started with the US government's takeover of Silicon Valley Bank (SVB) to prevent a $42 billion bank run. This move, coupled with the FDIC's closure of Signature Bank, sent shockwaves across the market, resulting in the most significant government intervention in banking since the Great Recession. Panic soon spread across the Atlantic, with Credit Suisse's shares plummeting by 30% and Switzerland's largest bank, UBS, hastily buying its struggling counterpart in a bid to calm the markets.
But will the public and private intervention be enough to contain the panic virus, or is this just the first wave of many to come? Only time will tell.