Lawmakers are demanding change to ensure these types of financial events don’t happen again
For a little while there, America’s banking system seemed as though it was edging towards a free fall.
But, thankfully, panic on Wall Street has largely subsided.
Regional bank stocks rebounded Tuesday morning after being pummelled in a Monday night selloff.
This was fuelled by a mix of contagion fears and a pile-on of short-sellers who profit when stocks lose value.
Despite the U.S. government’s announcement that it will be backstopping deposits for customers at Silicon Valley Bank and Signature Bank, Wall Street remained wary of smaller banks that may have similar risks.
But the mood in New York on Tuesday was much calmer.
This is partly thanks to the latest inflation report showing price surges falling for the eighth month in a row.
Meanwhile, many lawmakers are demanding change to ensure these types of financial events don’t happen again.
Democratic Representative Katie Porter is calling for a repeal of Trump-era bank deregulation.
