By Michael Roberts * Bank stock prices have stabilized at the start of last week. And all the key officials at the Federal Reserve, the US Treasury and the European Central Bank are reassuring investors that the crisis is over. Last week, Fed Chair Jerome Powell called the U.S. banking system “strong and resilient” and there was no risk of a banking ...
By Michael Roberts * As I write, US regional banks stock and bond prices are diving. And a major international Swiss bank, Credit Suisse, is close to bankruptcy. A financial crisis not seen since the global financial crash of 2008 appears to be unfolding. What will be the response of the monetary and financial authorities? Back in 1928, the then US treasury ...
By Michael Roberts * On Friday, Californian bank Silicon Valley Bank (SVB) became the largest bank to fail since the 2008 financial crisis. In a sudden collapse that shocked financial markets, it left billions of dollars belonging to companies and investors stranded. SVB took deposits from and made loans to companies in the heartland of America’s tech sector. The US Federal Deposit ...