According to the Financial Times' City Network — a group of about 50 senior finance and policy leaders — the recent collapse of Credit Suisse and Silicon Valley Bank will mark a turning point for global financial policymaking, forcing a re-examination of the deposit insurance, culture risk management, and cross-border cooperation.
Mervyn Davies, a former UK trade minister and chair of investment manager LetterOne, said the US regulators' decision to rescue all depositors caught up in the recent collapses "changes the global game." Regulators justified the decision to offer depositors immediate access to their funds — including sums well above the $250,000 covered by the US deposit insurance guarantee scheme — as necessary to protect financial stability. "If the largest economy steps in to save depositors, other countries will have to follow suit," Davies said. "We cannot have the US going in a different direction to the UK and Europe."
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