Photo: Science Photo Library RF
1 President, Experts Want To Ease Consumers' Fears After Two Banks Collapse
Financial experts are telling Americans not to panic after California's Silicon Valley bank failed on Friday and New York-based Signature Bank closed on Sunday. Most money managers say the banks that failed are "specialized" and the FDIC will make all depositors' cash good. President Biden is also reassuring the nation that the banking system is safe. The President said customers who had accounts with the two banks should have access to their money this week. The Fed is also creating a Bank Term Funding Program to secure institutions affected by this instability. The president attempted to assure Americans yesterday by saying, “Every American should feel confident their deposits will be there if and when they need them.” Why is the government vowing to help consumers? The short answer is to avoid a national run on other banks. Covering peoples’ money beyond the $250,000 cap helps convince customers to stay where they are because they know their funds will be protected even if another bank fails. Where’s the money coming from? Biden says "no losses" from the collapse will be paid for by taxpayers and that the money would come from the fees banks pay into the Deposit Insurance Fund or as it’s generally known, The FDIC.
2 First Nor'easter Of Season Hitting Northeast
A powerful nor'easter is set to hit the East Coast. Forecasters say the next two days will bring snow, heavy rain, strong winds, power outages, and coastal flooding. Over 20 million people are under winter alerts in advance of the storm. New York City’s harsh weather started last night while closer to Boston, the storm will peak today into tomorrow. Meanwhile, New York Governor Kathy Hochul has declared a state of emergency starting today. The state of emergency applies to more than three dozen counties. Hochul warns of widespread power outages due to heavy, packed snow and wind gusts of up to 45 miles per hour, saying crews are already in place to respond when conditions allow. The region is expecting anywhere between eight and 18 inches of snow and Hochul is urging everyone to stay off the roads and reminding those who need to be out to give plows room. She warned residents that this would not be “pretty Christmas snow.” And as for New England, widespread coastal flooding and beach erosion could happen tomorrow as the storm system moves off the coast of that region. Accompanying wind gusts could reach 50 miles per hour, according to the Weather Prediction Center, which would affect areas across the I-95 corridor from New York City to Boston.
3 White House Approves Controversial Oil Drill In Alaska
The Biden Administration is giving the green light to a controversial oil drilling project in Alaska. The Willow Project is a decades-long oil drilling venture in the National Petroleum Reserve, which the federal government owns. It’s 200 miles north of the Arctic Circle. It's expected to produce 180,000 barrels of oil a day and create up to 2,500 short-term jobs and 300 long-term positions. The Willow Project has been heavily criticized by activists who say it's bad for the environment. President Biden, however, is expected to announce sweeping new protections for federal lands and waters in Alaska along with the Willow Project's approval. Why are many upset? Climate groups and Alaska Natives who opposed The Willow Project have argued it will alter Biden’s climate goals and pose environmental risks and health issues.