Elon Musk has expressed his opinion on the banking turmoil in the United States, following the collapse of several banks.
Banking woes in the United States came when the US Federal Reserve shut down Silicon Valley Bank, America’s 16th largest bank. The fall of SVB became the worst financial meltdown in 15 years. Another big financial lender, Signature Bank, collapsed in a few days. Those events caused panic, and Americans rushed to withdraw their assets. As a result, banks saw outflows of funds, and their stocks dropped in value. The Federal Reserve immediately stepped in. Even President Biden had to calm down preoccupied depositors. Tesla CEO Elon Musk also gave his assessment of the situation. In response to the regulator’s statement that the US banking system is safe, he tweeted “it couldn't get any worse.”
Earlier, the Federal Reserve stressed that the US banking system was reliable and stable. Speaking at a press conference later, Chair Jerome Powell explained that the collision of Silicon Valley Bank came due to poor risk management.
