First Republic Bank became the third bank to fail this year after Silicon Valley Bank and Signature Bank collapsed in March. The three banks held a total of $532 billion in assets, more than the $526 billion held by the 25 banks that collapsed in 2008. Stricter regulations have led to fewer bank failures in recent years, but midsize banks like First Republic, Silicon Valley, and Signature do not have the same regulatory oversight. The failure of Silicon Valley Bank was a "textbook case of mismanagement," and the Fed will "re-evaluate" its rules for banks similar in size.
Actress Sharon Stone revealed during a speech at a cancer benefit that she lost half of her money due to recent banking failures, though she did not provide further details. The speech also touched on personal struggles, including the recent death of her brother and godson. Stone urged attendees to donate to the cause, noting that even a small donation was a form of courage during tough times.
The House Financial Services Committee will hold a bipartisan hearing with federal financial regulators on March 29, 2023, in response to the failures of Silicon Valley Bank and Signature Bank. The Committee aims to understand why and how these banks failed and will conduct the hearing without fear or favor to deliver answers to the American people and protect depositors, promote the safety and soundness of America’s banks, and strengthen the financial system.
