Elon Musk skeptical about the US banking system

(ORDO NEWS) — American businessman and billionaire Elon Musk reacted to the statement of the Federal Reserve System (Fed) about the reliability of the US banking sector with the words “it couldn’t get worse.”

The businessman posted the corresponding comment on Twitter.

“It couldn’t get any worse!” he wrote in response to the Fed’s announcement that the banking system was safe.

Earlier Wednesday at the Fed on the reliability and stability of the US banking system.

Later, the head of the regulator, Jerome Powell, speaking at a press conference, also said that the collapse of the American bank Silicon Valley Bank (SVB) was caused by the inability of the company’s management to manage risks, and not weaknesses in the banking system.

On March 10, regulators in the state of California closed Silicon Valley Bank, one of the twenty largest US commercial banks . This was the largest bank failure in the US since the 2008 financial crisis.

The collapse of the SVB turned out to be associated with an increase in the Fed’s key rate, which led to the depreciation of assets on the balance sheets of many financial institutions. In addition, the closure of the crypto-focused bank Silvergate was announced on March 8, and the similar New York-based Signature Bank on March 12.


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