As the federal government raced to reassure Americans that the banking system was secure, depositors withdrew savings and investors sold off bank shares on Monday, following the failure of two banks that fueled fears of more financial institutions collapsing.
Finance expert Dan Ricardo, a professor at the University of San Diego, urged people not to panic, stating that although many Americans don’t bank with these particular banks, the lack of confidence in the system affects everyone.
Ricardo advised people to ensure they’re with a reputable bank and have FDIC insurance coverage up to $250,000.
He also encouraged people to focus on what they can control, such as their credit card debt and skill set, rather than dwelling on things they can’t control, such as the Federal Reserve’s actions.
President Biden’s reassurances that people’s money was safe were important, but the images of banks closing and people waiting at doors undermined the message, Ricardo added.