DAYTON — U.S. stocks jumped Monday after the news that Swiss Bank UBS purchased rival Credit Suisse.
The move was meant to restore confidence in the banks after two U.S. banks were shut down by the FDIC.
That’s something that hadn’t happened since the financial crisis in 2008.
News Center 7′s Xavier Hershovitz looked up the differences and similarities between now and then.
>>Silicon Valley Bank collapse: What it means for your money
The 2008 crisis was a series of institutions either failing or being bailed out. Bad loans ended up being the root of the problem for them then however this time it’s not.
We spoke to Miami University Economics Professor EJ Ume, and he told us this banking crisis is different.
“It could get worse before it gets better, but I think we’ve taken the right precautions from a policy standpoint, and a regulatory standpoint. I think the fed has done the right thing in terms of opening up their facility, their lending facility. So I think we’re taking the proper steps to sort of reduce the anxiety. And so that it doesn’t get to the level that it was in 08,” Ume said.
Experts call the current banking crisis a crisis of confidence, and they hope that this latest move works to restore it.
©2023 Cox Media Group