Talking Points: Are our banks safe?
MINNEAPOLIS -- The Silicon Valley Bank (SVB) began its collapse on March 8, when it notified investors it would need an immediate infusion of $2.2 billion to stay afloat. Despite the bank's CEO urging investors to "stay calm," panicked investors had withdrawn $42 billion in the first 24 hours.
Within 48 hours, SVB had a negative cash balance of nearly $1 billion and its assets were seized by the federal government. The shockwaves extended to banks across the country including here in the Twin Cities.
Professor Paul Vaaler, with the Carlson School of Management and the University of Minnesota Law School, explained the global domino effect triggered by the bank's collapse.
In 2018, former President Donald Trump rolled back provisions within the Dodd Frank Act, which protected consumers from actions by big banks. Esme Murphy asked Sen. Tina Smith, a member of the Senate banking committee, about why the regulations still in place failed to prevent the bank's collapse. Smith also discussed the safety of Minnesota's banking system.
Amid banking fears, two Twin Cities banks reassured their customers their money was safe. Banking leaders David Reiling, CEO of Sunrise Banks, and Jeffrey Wessels, President of Crown Bank, shared what they'll continue to do to protect their customers.
Talking Points airs every Wednesday and Thursday at 6:30 p.m. and 9:30 p.m., live on CBS News Minnesota.