Why More US Banks Could Collapse | Business Insider Explains | Business Insider

Silicon Valley Bank, Signature Bank, and First Republic are among the largest bank failures in US history. Business Insider's investing correspondent, Laila Maidan, dives into how interest rates and poor risk management could lead more American banks into crisis, which banks are most vulnerable, and the impact of these failures on businesses, communities, and the economy. Since the 2008 financial crisis, there have been 542 bank closures — and more could be at risk of failure.

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Why More US Banks Could Collapse | Business Insider Explains | Business Insider

[camelaMar]

Seems like these financial institutions, which are supposed to be stable, are starting to look shaky

[micheal_mills]

There is an equal market chance associated with each crash or collapse. I have seen people accumulate up to $1 million during a crisis, and even make it work in a strong economy if they are prepared and well-informed. Without a doubt, the bubble/collapse is making someone wealthy.

[Aarrenrhonda]

First Republic Bank was the 14th largest bank in the US, and it wasn't subject to the most strict controls. How many banks actually are subject to those controls, besides the big four? Any bank could suffer a run and fail, and if that happens to a community level or even state level bank it probably won't upset the national economy or ecosystem of banks, but any multi-state bank should be more closely watched, I cannot let my $680, 000 savings vanish after putting in so much effort to accumulate them.

[jacklyn-bu]

Our economy struggling and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.

[CameronFussner]

I am really worried about the current bank crisis/collapse, these are all the signs of yet another 2008 market crash 2.0, so my question is do I still save in the United States dollar or is this a good time to buy gold?

[APOLLINAIREBARTHOLOMIEU]

Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.

[billwhite]

If smaller banks invested in crypto they deserve to fail. That is not divesting risk, that is gambling, taking higher risk in hopes of higher return. High tech might not be as risky but certainly not conservative as banks use to be. FIREA really messed up a lot of financial institutions, and this type thing is what regulators were concerned about. Loans to first time restaurants too can be risky as a high percentage fail in the first two years.

[AltayHunter]

6:14 Graphics messed up and used a greater-than sign to represent less-than.

[kortyEdna]

Sadly, banks continue to stumble, mortgage rates is on the rise with higher imports and lower exports, yet the FED is to lessen cost. So, where do we grow and safeguard our money now? something will eventually break if they keep raising interests and quantitative tightening.

[SeanTalkoff]

The bank crisis isn't over yet, and experienced individuals know credit crises don't end quickly. Some find it amusing that some think it's resolved, but in reality, we're headed for a major economic downturn due to this credit contraction.

[HodgeChris]

It was a very bad decision to remove the Glass-Steagall Act in the late 1990s, which led to the spectacular failure of huge banks during the financial crisis of 2007–2008. To prevent another disaster, Dodd-Frank and this statute both need to be reestablished right away. What happened with these banks is only the beginning of what will happen if nothing is done to address the current situation.

[LindaL.Fielder]

It is obvious that a dollar crisis will unleash carnages on stock markets globally leading to economic downturns. We need to be prepared for more potential market volatility. how can I secure my $600K stock portfolio against declining?

[amazon]

Raised interest

Raised tariffs

Really taking a toll.

[IamJonny-ov]

First SVB, then signature bank and now first republic bank, these are all the signs of yet another 2008 market crash 2.0, so my question is do I still save in the United States dollar or is this a good time to buy gold?

[atenas]

If commercial real estate is in trouble, it is because commerce is in trouble
If commerce is in trouble, jobs are in trouble
If jobs are in trouble, residential mortgages are in trouble
08 all over again

[stevenporter]

Let the smaller banks fail then. Interest rates are historically low, only high compared to the past 20 or so years. Banks paid at or close to 0% for years - they should have built some liquidity reserves then instead of leveraging it all.

[nancydis]

Things are strange right now. The US dollar is becoming less valuable because of inflation, and other powerful nations waking up to trade in their own currencies. Good thing is, a lot of people still turn to the Dollar because of the safety is somehow assures. I'm worried about my retirement savings of about $420, 000 losing value because of these factors and more. Where else can we keep our money?

[Ghostintheshell]

I went from banking with a traditional bank ( Wells Fargo ) for 15 years to an online bank only ( discover ) since I was already using them for credit card, and I couldn't be happier I get paid 3 days early no fees no nothing and then I opened an account at wealth front where I keep the majority of my money since their yearly rate is 5.0% .... The old traditional banks are going to go out of business if they don't change and get with the times . Like why do I have to pay a bank 15 bucks a month for them to " service my account " foh

[Darkmatter]

Little know fact, In 2008 China saved us by buying 1.2 TN$s of US Gov. bonds. Wonder if they'd be willing to do the same again!

[chipset]

It's not "your" money unless you have it in hand.