Halal Investors Podcast - Episode 2 In this episode of the Halal Investors Podcast, we continue our discussion of the recent closure of Silicon Valley Bank and its impact on the global banking industry, including the Swiss bank Credit Suisse's troubles and the overall crisis of confidence in banks.

Key Takeaways

• The FDIC stepped in to guarantee all deposits in Silicon Valley Bank after its closure, with other banks also failing soon after. This led to people moving their funds from smaller banks to the "big four" in the United States, considered "too big to fail" (#banking #FDIC #SiliconValleyBank).
• Interest rates have risen, causing people to reconsider their banking options and putting pressure on banks to offer higher deposit interest rates to retain deposits (#interestrates #banking).
• Credit Suisse, one of Switzerland's top three banks, faced trouble and was bought out by UBS at a huge discount, with the Swiss National Bank stepping in to backstop potential losses. This resulted in UBS facing higher risk of default due to the acquired debt (#CreditSuisse #UBS #SwissNationalBank).
• A crisis of confidence in banks has emerged, with people scrutinizing the balance sheets of US banks and their exposure to potential losses. The uncertainty has led to an increased usage of the Federal Reserve's discount window and federal home loan banks (#bankingcrisis #FederalReserve).
• Banks are no longer trusting each other, leading to a seizing up of private lending markets and increased reliance on government-backed facilities (#banking #trust).