U.S. President Joe Biden reassured Americans on Monday that they "can rest assured that our banking system is safe," indicating how seriously officials are treating the shocking collapse of Silicon Valley Bank.

But evidently, this reassurance isn't enough to quell fears.

When a major bank collapses, the implications can be far-reaching and significant for both the financial industry and the wider economy. The failure of a large bank can result in a ripple effect that spreads throughout the financial system, potentially leading to a credit crunch and a contraction of lending activity. This, in turn, can result in decreased consumer and business spending, which can impact economic growth.

Additionally, when a major bank collapses, there may be a loss of confidence in the banking system, which can cause panic and further destabilize the financial markets. This can result in a decrease in asset values and stock prices, which can impact the portfolios of investors and retirement accounts of individuals.

Furthermore, the collapse of a major bank can also have regulatory and political implications. Regulators may need to step in to manage the fallout and prevent a systemic crisis, while policymakers may need to implement new regulations or policy measures to prevent similar events from occurring in the future.

The collapse of a major bank can have significant and widespread consequences, and it is crucial that regulators, policymakers, and market participants work together to mitigate the risks and prevent such events from occurring.

U.S. regulators announced on Sunday that they would safeguard any deposits made by SVB customers. The measure aims to stop more bank runs and assist tech companies in maintaining employee salaries and operational funding.

But, the intervention does not equate to a bailout similar to the one in 2008, therefore holders of the company's stock and bonds won't be covered.

The 2008 bailout refers to a series of emergency measures undertaken by the United States government to rescue several large financial institutions from the brink of collapse during the global financial crisis.

The bailout, also known as the Troubled Asset Relief Program (TARP), was signed into law by President George W. Bush in October 2008 and authorized the Treasury Department to purchase up to $700 billion of troubled assets from financial institutions.

The aim of the bailout was to stabilize the financial system and prevent a broader economic collapse. Many of the institutions that received government aid were large banks and insurance companies that had invested heavily in subprime mortgages and other risky assets.

However, the bailout remains a contentious issue, with some critics arguing that it rewarded bad behavior by the financial industry and others contending that it was necessary to prevent an even more severe economic downturn.

"Let me be clear that during the financial crisis, there were investors and owners of systemic large banks that were bailed out ... and the reforms that have been put in place mean that we're not going to do that again," Treasury Secretary Janet Yellen told CBS Sunday.