Gov. Phil Murphy warned about the potential economic fallout from the collapse of Silicon Valley Bank. This comes as the state is offering financial help to New Jersey businesses which had accounts at that bank, as well as another bank that failed Sunday, the New York-based Signature Bank. Murphy said he believes the disruption in the financial sector could impact New Jersey’s economy. Murphy, a former Goldman Sachs investment banker, also joined a chorus of Wall Street analysts who believe the bank failures will prompt the Federal Reserve to pause raising interest rates.
Late Sunday, the state announced programs to provide emergency financial assistance to New Jersey-based companies impacted by the banks’ collapse. On Monday, the New Jersey Economic Development Authority launched its Angel Match program to help early-stage companies with funding. The NJEDA will launch another program to support entrepreneurs on Wednesday. Tim Sullivan said he believes more than 100 New Jersey companies are impacted.
President Joe Biden on Monday detailed how the U.S. government took a series of steps to protect the banking system, including assuring that all depositors of the failed banks could access their money. And the Federal Reserve unveiled an emergency lending program designed to prevent a wave of bank runs. Biden also said he will ask Congress to strengthen banking regulations, which were rolled back under the previous administration.
