Part 2/11:
The immediate aftermath saw mass withdrawals from First Republic Bank in Brentwood, Los Angeles, with long lines forming as customers rushed to pull their money. Such bank runs signal a serious erosion of confidence, a phenomenon often associated with financial crises. These events have heightened anxieties about the stability of regional and smaller banks, raising questions about the resilience of the entire banking system.
Government Intervention: Quick, Decisive Action
In response, a joint statement from the Treasury, Federal Reserve, and FDIC announced a coordinated effort to stabilize the banking system. They emphasized their commitment to protect deposits, ensure access to credit, and maintain economic growth. The actions taken included: