As Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O) fell late last week, President Joe Biden pledged to protect the U.S. financial sector.

Biden reassured markets and depositors after US emergency efforts to guarantee SVB deposits failed to calm investor concerns about global bank contagion.

The mid-cap lender's Executive Chair James Herbert told CNBC that First Republic was able to meet withdrawal needs on Monday with supplementary financing from JP Morgan Chase.

After the worst bank failure since the 2008 financial crisis, Biden promised tougher bank regulation and said his administration's weekend steps should reassure Citizens.

"Banks are safe for Americans. You'll have access to your deposits "he declared. JP Morgan Chase (JPM.N), Morgan Stanley (MS.N), and Bank of America (BAC.N) shares fell, along with stock markets.

In the money markets, a key U.S. banking system credit risk indicator rose, as did euro zone indications. Europe's volatility index (.V2TX) hit its highest level since October 2022.

"When a huge move is done fast, you think "crisis averted." So your second thinking is, how big was the catastrophe and how big were the risks?" remarked Rick Meckler, Cherry Lane Investments partner.

Gold surged toward $1,900 as investors sought safety and wagered that the U.S. Federal Reserve may have to delay rate hikes.

He noted that SVB bonds were "worth next to nothing in a short length of time, so against that backdrop, that has an effect that is translated on a more widespread basis."