US government races to reassure Americans that banking system is safe

A person reads a notice posted on the front doors of a Silicon Valley Bank branch that reads ‘FDIC Acts to Protect All Depositors of the former Silicon Valley Bank, “Santa Clara, California,’ in Pasadena, California (Damian Dovarganes/AP)

Depositors withdrew savings and investors broadly sold off bank shares on Monday as the US federal government raced to reassure Americans that the banking system was secure after two bank failures fed fears that more financial institutions could fall.

US President Joe Biden insisted that the system was safe after the second and third largest bank failures in the nation’s history happened in the span of 48 hours.