credit suisse , silicon bank fail, warren buffett warn on bank crisis not over yet
[ad_1]
Warren Buffet’s Warning
The veteran investor gave his opinion on the ongoing banking crisis in America. He said that the banking crisis is not the first time. This type of situation has been seen in America in the past as well and more such banking crises may come in the coming future as well. Warren Buffet’s warning increased the concern of the people, but he said that people do not need to worry about it. Warren said that most people do not need to be troubled by this crisis, because people’s money is safe with the Federal Deposit Insurance Corporation. Even if the bank collapses, most investors’ money is safe with the US Federal Deposit Insurance Corporation.
What is the rule in America
In fact, in the US, the Federal Deposit Insurance Corporation guarantees protection to people on bank deposits. This guarantee is up to $2.5 million. That is, if a bank collapses, then according to the rules of the FDIC of America, the account holders of the bank can get a claim of up to $ 2.5 lakh. The way bank deposit holders in India get the protection of DICGC insurance from RBI. Same way people in America get FDIC protection. When a bank collapses in India, people get a deposit of up to Rs 5 lakh under the Bank Security Act.
Comparison with 2008 banking crisis
Significantly, after the sinking of the Signor Bank, Silicon Valley Bank in America, the concern of the people increased. Investors are nervous. People have started withdrawing their money from banks. People are seeing this banking crisis by linking it to the banking crisis of 2008. The US government is trying to improve the condition of the banks. At the same time, Credit Suisse, one of the oldest banks in Europe, is also in trouble. USB Bank agreed to buy the troubled Credit Suisse. The government prepared a rescue package of 109 billion Swiss francs for this deal. The upper house of the Swiss parliament approved the government contribution to the package, but the matter got stuck in the lower house.
[ad_2]
Source link
