Following two bank collapses over the weekend, investors are selling off shares in midsize and regional banks.
However, President Joe Biden is reassuring banking customers that the banking system is safe, and their deposits will be there when they need them.
Silicon Valley Bank, which included tech startups in California among its customers, closed on Friday after customers rushed to withdraw their money all at once.
New York Bay Signature Bank collapsed on Sunday.
The federal government has announced it will cover all deposits at both banks, even those that exceed the federally insured limit of $250,000, without using taxpayer money, but rather from fees paid into the insurance fund by the banks themselves.
Steve Lewis, CEO of SGL Financial, believes this is an isolated situation and is unlikely to have a sweeping impact across the industry.
