Why Banks Are Failing in the United States and Europe | PBS NewsHour

Days after the collapse of Silicon Valley Bank and emergency measures to stabilize the system, key parts of the banking industry were still reeling and anxious. UBS agreed to buy out its rival Credit Suisse for a fraction of its market value, and there were new efforts to help stabilize First Republic Bank.

In prepared remarks on Tuesday, Treasury Secretary Janet Yellen said, “The situation is stabilizing,” but also pledged that the Biden administration would take steps to protect the banking system. The Silicon Valley bank collapse on March 10, 2023, was the largest bank collapse since Washington Mutual went belly up during the financial crisis of 2008.

Watch the video above to learn more, and then answer the discussion questions in the upper-right corner of this page.

This lesson was originally posted here on PBS NewsHour Classroom on March 21, 2023. Check out more resources at NewsHour Classroom.