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.
Difficult words: deposit (money in a bank account), insured (covered by insurance in the event of damage or loss), regulation (an official rule which controls something).
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?
LEARN 3000 WORDS with NEWS IN LEVELS
News in Levels is designed to teach you 3000 words in English. Please follow the instructions
How to improve your English with News in Levels:
- Do the test at Test Languages.
- Go to your level. Go to Level 1 if you know 1-1000 words. Go to Level 2 if you know 1000-2000 words. Go to Level 3 if you know 2000-3000 words.
- Read two news articles every day.
- Read the news articles from the day before and check if you remember all new words.
- Listen to the news from today and read the text at the same time.
- Listen to the news from today without reading the text.
- Answer the question under today’s news and write the answer in the comments.
- Choose one person from the Skype section.
- Talk with this person. You can answer questions from Speak in Levels.
Stock images by Depositphotos