The sudden collapse of two U.S. banks last week left many people wondering about the safety of their own deposits, the health of the banking system and consequences down the road.
Mary Ann Scully, the former CEO of a Baltimore-based bank, has been hearing a lot of such concerns since a bank run hit Silicon Valley Bank and it was taken over by federal regulators, a chain of events that triggered a similar run at New York-based Signature Bank. Bankrate lists those failures as two of the three biggest in U.S. banking history.
“The big fear now is, of course, is this some indication of systemic risk, and does this mean there’s more dominoes to fall?” said Scully, dean of the Rev. Joseph A. Sellinger, S.J. School of Business and Management at Loyola University Maryland and co-founder of Howard Bank, which was sold last year. “I would say I don’t think that is the case — which is not to say that no one else will get into trouble.”
