Worsening US Banking Crisis

Is your saving safe in the bank

Let us discuss that

American Banks are potentially insolvent

America has over 4900 banks and majority of them are facing lack of sufficient funds

A Hoover Institution report by Prof Seru and a group of banking experts calculates

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

Looking Back

Why it is happening

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

US banking crisis had side effect

Credit Suisse bank already sold to UBS

Banks are Closing Branches

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.

Impact on household

Is your Deposit safe in the Bank

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.

Government Assured Depositors

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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