Missouri treasurer says state banking industry remains stable despite recent failures
Vivek Malek speaks Dec. 20 after being announced as the next Missouri State Treasurer by Gov. Mike Parson (Photo courtesy Missouri Governor’s Office).
Missouri Treasurer Vivek Malek says the state had no investments in a pair of banks that failed in the last week, and that he has been assured by St. Louis Federal Reserve officials that “Missouri’s financial institutions are in a stable position.”
“I was encouraged to be assured that our banks are in a good position,” Malek said in a statement released Thursday, “but will continue to monitor the situation.”
Malek’s comments echo those of the Missouri Bankers Association, which in a statement earlier this week referred to the two banks that collapsed as “outliers” that “do not reflect the norm for banks across Missouri and America.”
“The closed banks had significant exposure to volatile sectors, including cryptocurrency,” the organization said. “Missouri banks have limited exposure to these types of industries.”
The banking crisis began last week when Silicon Valley Bank, the 16th largest bank in the U.S. and a key financial institution for the tech sector, collapsed after a bank run. Federal regulators were forced to take over.
On Sunday, New York regulators closed Signature Bank, which served cryptocurrency clients, after investors spooked by the sudden collapse of Silicon Valley Bank withdrew more than $10 billion in deposits.
U.S. Treasury Secretary Janet Yellen announced that the FDIC would cover depositors for both banks.
“The state treasurer’s office continues to monitor the situation,” Malek tweeted this week, “and Missourians should be assured that this office’s conservative policies are protecting their hard-earned tax dollars.”
This story has been updated.
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