WASHINGTON, March 18 (Reuters) - The lightning speed at which the banking industry descended into turmoil has shaken global markets and governments, reviving eerie memories of the financial crisis. Like 2008, the effects may be long lasting.
In the space of a week, two U.S. banks have collapsed, Credit Suisse Group AG (CSGN.S) needed a lifeline from the Swiss and America's biggest banks agreed to deposit $30 billion in another ailing firm, First Republic Bank (FRC.N), in a bid to boost confidence.
Evoking recollections of the frenzied weekend deals to rescue banks in the 2008 financial crisis, the turmoil prompted monumental action from the U.S. Federal Reserve, U.S. Treasury and the private sector. Similar to 2008, the initial panic does not seem to have been quelled.
"It does not make any sense after the actions of the FDIC and the Fed and the Treasury (last) Sunday, that people are still worried about their banks," said Randal Quarles, the former top banking regulator at the Federal Reserve. He now faces renewed criticism over his agenda at the Fed, where he oversaw efforts to reduce regulations on regional banks.