Let us discuss that
America has over 4900 banks and majority of them are facing lack of sufficient funds
More than 2,315 US banks are currently sitting on assets worth less than their liabilities.
The market value of their loan portfolios is $2 trillion lower than the stated book value.
Failure of Silicon Valley Bank, Signature Bank, and First Republic.reflects the weakness of the banking system in the US
Fed Rates have gone up 400 to 500 basis points in a year
US commercial property prices have so far fallen by just 4pc to 5pc and expected to fall further
The US economy is moving towards full recession
Credit Suisse bank already sold to UBS
Wells Fargo is closing a total of 14 branches across the country
PNC bank is closing 47 branches in 15 states bu June 2023
PNC closed around 200 branches in total in 2023
Closing of First Republic Bank, the third US bank to collapse in the past two months, raised the concern.
Depositors are worried about the safety of their deposits
Your money in a US bank is safe if it is insured by the FDIC and you have less than $250,000.
The amount over $250,000 is considered uninsured.
It was the largest bank failure since Washington Mutual went under in 2008.
President Joe Biden reassured Americans that the money they have in banks is safe.
Despite assurance, depositors are feeling unsafe
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