Two US banks collapse – level 2
Last week, US Silicon Valley Bank failed, because it couldn’t pay back customers’ deposits.
Deposits of up to 250,000 dollars were insured, but the problem was that most customers had deposits of billions of dollars. US president Joe Biden said that the US banking system was safe, and he promised that customers would get their money back. After the bank failed, authorities closed another bank in New York. Experts said that similar things would repeat because banks took too much debt which they couldn’t pay back.
European banks made tough regulations after the news, but they already lost 100 billion dollars in one week.
You can watch the original video in the Level 3 section.
What measures can US authorities and banks take to prevent similar problems from arising in the future?
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How to improve your English with News in Levels:
- Do the test at Test Languages.
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- Read two news articles every day.
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- Listen to the news from today without reading the text.
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