Decreased public confidence in US banks

The recent failures of two US banks, Silicon Valley and Signature, have led to a crisis of customer confidence.

A coalition of mid-sized US banks has asked government officials to guarantee all customer deposits, even deposits over $250,000, for two years to avoid spreading the crisis after a failed Silicon Valley bank, Bloomberg reported.
 
Deposits of less than $250,000 are currently guaranteed in the US banking system.
 
The so-called Coalition of Medium Banks of America wrote in a letter to the authorities: "Such a measure will immediately end the massive exodus of small bank customers and stabilize the banking sector. The risks of other bankruptcies will also be reduced."
 
Many clients of banks like Silicon Valley and Signature have withdrawn their money from banks and opened accounts with larger banks like JPMorgan Chase or Bank of America.
 
People believe that these two banks are so important that the state will not be able to help them in case of a crisis.
 
Shares in First Republic Bank, which primarily caters to wealthy clients, are down 80% this week.
 
This San Francisco-based bank is the 14th largest bank in America by assets.