One bank CEO shared his personal cellphone number to all 70,000 depositors at his institution, who asked him for personal assurances that everything would turn out OK.
After nearly a week of tumult, the spectre of a billowing crisis over the banking industry appeared to ease, at least for the moment, as pressure began to lift on the mid-size and regional lenders most in peril.
Though the financial world was suddenly glued to news of banks that only the most obsessive observers would have earlier heard of, While stock prices are not a clear proxy for whether a bank is healthy, falling shares or even simply volatility in prices can set off panic in borrowers and lead to a bank run. The recent downturn in the industry was set off in part by just that, when shares in Silicon Valley Bank, a technology-focused lender, dived after it disclosed plans to raise money that it needed to pay out some depositors.
Officials stressed, however, that stockholders and bondholders in the banks themselves would still be in line to lose money on their investments. For the first day since Silicon Valley Bank’s unwinding, there were no widespread reports of customers being denied the chance to withdraw money from ATMs and bank branches. It appeared that the worst fears of widespread cash shortages were contained for now.Yet much uncertainty remains. As bank shares were recovering and branches returned to normalcy on Tuesday , only a few institutions had provided extensive updates about the degree to which skittish customers were pulling out their money.
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