Berger outlines what CUs need to know on bank failures

by NAFCU Newsroom

As President Joe Biden, lawmakers, and regulators Monday continued to address the failings of Silicon Valley Bank (SVB) and Signature Bank, NAFCU President and CEO Dan Berger sent a message to member credit unions providing additional insights into the situation and the safety of credit union deposits.

Berger highlighted that:

  • the banks’ failings are a result of “their poor management of assets and liabilities – not a systemic failure” like the 2008 financial crisis;
  • SVB and Signature Bank’s banking models are not representative of the U.S. financial ecosystem, as their businesses were heavily concentrated in startup companies, venture capital firms, and crypto companies;

 

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