US banking crisis: Close to 190 banks could collapse, according to study

[excalibur]

Like watching a train wreck in slow motion.

And inaptly named Biden deficit reduction bill is a key part of the mess.

With the failure of three regional banks since March, and another one teetering on the brink, will America soon see a cascade of bank failures?

Bloomberg reported Wednesday that San Francisco-based PacWest Bancorp is mulling a sale.

Last week, First Republic Bank became the third bank to collapse, the second-largest bank failure in U.S. history after Washington Mutual, which collapsed in 2008 amid the financial crisis.

After the demise of Silicon Valley Bank and Signature Bank in March, a study on the fragility of the U.S. banking system found that 186 more banks are at risk of failure even if only half of their uninsured depositors (uninsured depositors stand to lose a part of their deposits if the bank fails, potentially giving them incentives to run) decide to withdraw their funds.

Uninsured deposits are customer deposits greater than the $250,000 FDIC deposit insurance limit.

...​

US banking crisis: Close to 190 banks could collapse, according to study

The Fed's aggressive interest rate hikes have eroded the value of bank assets such as government bonds and mortgage-backed securities.

www.usatoday.com

 

[HereWeGoAgain]

This scares the shit out of me!!!
We have a shitload of bank stocks as in close to a Million bucks worth.
We should have sold several years back but who knew biden was going to fuck things up so bad?
We were within a few bucks of our sales target damn it!!!!

 

[SassyIrishLass]

Another complete fck up by this clown administration

 

[Mac1958]

Back in reality, the roots of this mess go back several years and multiple Presidents. No matter what hyper-partisans want to think, things like this don't happen overnight.

In fact, if you have a need to blame someone, blame Bill Clinton for starting the chain reaction that got us here, when he signed the repeal of Glass Steagall, completely changing the nature of banking and opening the floodgates. If you want to add two more individuals, blame Larry Summers and Robert Rubin for talking him into it. But Clinton signed the repeal, and that's on him.

The rest of this is noise.

 

[themirrorthief]

blow all your money on pussy and hotties and you wont need to worry about banks anymore

 

[ralfy]

Half of America’s banks are potentially insolvent – this is how a credit crunch begins

The twin crashes in US commercial real estate and the US bond market have collided with $9 trillion uninsured deposits in the American banking system. Such deposits can vanish in an afternoon in the cyber age.

finance.yahoo.com

 

[luiza]

You can shout it to the Sheeple until you are blue in the face .
You are wasting your time .

Stupid is , as Stupid will certainly do .

 

[John Edgar Slow Horses]

No likelihood that more than 1/2 of deposits would be withdrawn from any bank much less 186.

The system is sound enough to prevent that, although Trump tried and failed to remove the Obama banking safeguards.

 

[Votto]

This scares the shit out of me!!!
We have a shitload of bank stocks as in close to a Million bucks worth.
We should have sold several years back but who knew biden was going to fuck things up so bad?
We were within a few bucks of our sales target damn it!!!!

 

[1srelluc]

It all seems confined (for now) to western region banks. The regulators (and their boss) responsible for that part of the country seemed more concerned with making sure tech/environmental concerns got the money they needed than sound loan practices.

What will push others over the edge if it happens is a public panic. All banks are feeling the pinch of the fed interest hikes.

 

[Independentthinker]

Like watching a train wreck in slow motion.

And inaptly named Biden deficit reduction bill is a key part of the mess.

​

With the failure of three regional banks since March, and another one teetering on the brink, will America soon see a cascade of bank failures?​

​

Bloomberg reported Wednesday that San Francisco-based PacWest Bancorp is mulling a sale.​

​

Last week, First Republic Bank became the third bank to collapse, the second-largest bank failure in U.S. history after Washington Mutual, which collapsed in 2008 amid the financial crisis.​

​

After the demise of Silicon Valley Bank and Signature Bank in March, a study on the fragility of the U.S. banking system found that 186 more banks are at risk of failure even if only half of their uninsured depositors (uninsured depositors stand to lose a part of their deposits if the bank fails, potentially giving them incentives to run) decide to withdraw their funds.​

​

Uninsured deposits are customer deposits greater than the $250,000 FDIC deposit insurance limit.​

​

...​

US banking crisis: Close to 190 banks could collapse, according to study

The Fed's aggressive interest rate hikes have eroded the value of bank assets such as government bonds and mortgage-backed securities.

www.usatoday.com

But but but, Biden and the left are telling us how great the economy is.

 

[22lcidw]

blow all your money on pussy and hotties and you wont need to worry about banks anymore

When the collapse happens that will become much cheaper.

 

[Flash]

Another complete fck up by this clown administration

You would have thought the American public would have understood that it was Democrat policies like the CRA that caused the bank failures back in 2007. Can't trust the Democrat sonofabitches. They will screw up everything they touch.

 

[badger2]

https://twitter.com/The_Real_Fly

 

[John Edgar Slow Horses]

This financial problem was caused by poor banking practices (primarily lack of due diligence - no risk assessment) not because of the government.

The Obama banking regulations that Trump was unable to get at have saved our banking system.

Western Pac and maybe one other will go down because they were suckered by bad banking practices.

 

[Dirk the Daring]

Back in reality, the roots of this mess go back several years and multiple Presidents. No matter what hyper-partisans want to think, things like this don't happen overnight.

In fact, if you have a need to blame someone, blame Bill Clinton for starting the chain reaction that got us here, when he signed the repeal of Glass Steagall, completely changing the nature of banking and opening the floodgates. If you want to add two more individuals, blame Larry Summers and Robert Rubin for talking him into it. But Clinton signed the repeal, and that's on him.

The rest of this is noise.

100%.