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Recent Bank Failures, Do We Need to Be Worried? Teri Williams w/ Karen Hunter
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Recent Bank Failures: Do We Need to Be Worried?
Undoubtedly, the COVID-19 pandemic has wreaked havoc on various industries, with the banking sector not being an exception. Over the last several months, there has been an alarming increase in bank failures, particularly amongst smaller banks. In the US alone, 18 banks have failed since the beginning of this year. But does this mean that we should start worrying?
To understand the situation better, we have to examine what causes bank failures in the first place. In essence, banks fail when they can no longer meet their financial obligations, whether it be due to mismanagement, fraud, or simply a lack of assets. For smaller banks, their biggest challenge is usually finding enough capital to stay afloat. With this in mind, it’s safe to say that the pandemic has played a significant role in the recent bank failures we’ve seen.
The pandemic has negatively impacted most businesses, with smaller banks being the hardest hit. The economic downturn has led to a significant decline in loan payments and decreased revenue from customer deposits, which in turn has deprived these banks of the necessary capital required to continue their operations. Furthermore, with the situation far from stable, these smaller banks are finding it challenging to attract new customers or investors.
Despite the spate of bank failures, it’s important to note that the banking sector in the US remains highly regulated. The Federal Reserve, in particular, has a dedicated department that monitors banks’ financial health, and any warning signs of imminent failure are usually noticed and addressed before it’s too late. Additionally, the FDIC, which stands for Federal Deposit Insurance Corporation, ensures that all deposits in insured banks are protected, even in the event of a bank’s failure. As such, customers of affected banks don’t lose their money.
However, we cannot rule out the possibility of a domino effect occurring. With the increasing number of bank failures, there’s a risk that customers’ confidence in the banking sector may be eroded, leading to a withdrawal of deposits and investment. This, in turn, could lead to further failures and a general destabilization of the industry.
To counter this, it’s imperative that smaller banks and credit unions have access to government stimulus packages, loans, and other financial assistance to help them stay afloat during these trying times. Additionally, personnel in the banking sector need to be adequately trained to manage crises, handle customers, and develop strategies that can mitigate the impact of any future pandemics or financial downturns.
In conclusion, while it’s not time to press the panic button yet, customers and investors in the banking sector need to remain vigilant and informed about recent bank failures. The government and regulatory bodies must also be swift in their responses to help keep the banking sector stable. Ultimately, the well-being of the banking sector affects us all, and it’s in everyone’s best interest for us to work together to maintain stability and weather the current economic storm.
Together, we can navigate this trying period and safeguard our financial systems for future generations.
240 billion dollars sounds to me like a overall Silicon Valley buyback. With tech companies and the layoffs in the tech industry. Let not forget QUIBI an attempted mobile streaming service founded by Jeffrey Katzenberg and was led by Meg Whitman, its CEO. The service raised $1.75 billion from investors. In 2018, Quibi raised $1 billion in funding from major Hollywood film studios, TV companies, telecommunications companies, technology companies, banks, and other investors including The Walt Disney Company, 21st Century Fox, NBCUniversal, Sony Pictures, WarnerMedia, Viacom, RTL Group, FremantleMedia, eOne, Lionsgate, MGM, Madrone Capital, Goldman Sachs, JPMorgan Chase, Alibaba Group, Liberty Global and ITV.
In 2019, Quibi announced it would launch in April 2020 with two pricing tiers. On July 8, 2019, BBC Studios announced it had invested in Quibi. By late 2019, Quibi announced it had sold out its first-year advertising inventory, which amounted to $150 million. This is pre-launch with no analytics. Sounds like a tech buy back to me.
The past 3 years has shown you the book of Revelations is the reality, everything falling apart and this racist, corrupt country never begins to tell the half of the truth
Bank failures are just media FUD to try and get retail traders to sell stock and buy puts. Stock market cannot fall farther as retail traders are prepared for such a move due to the negative media tone and bank failure news. Still, just like today, stocks should rally away all negative fears as market makers are more bullish than ever due to retail trader fear.
The failure of these speaks to the underbelly of capitalism. This is the system that we choose to believe in and embrace. Our peoples were enslaved so to date we participate in this system but collectively we have no clue as to how to save and invest our hard earned money. If white as anjeil shimes Johnny say they good we good. Then we put our money with the charlatans and then we no longer have a cent to put over our eyelids. Senator Elizabeth Warren pointed out that there are many things that can be done to tame inflation but the fed's are only concentrated on raising interest rates. They have no interest in the fact that raising interest rates will create a ripple effect and may put thousands of jobs in jeopardy.
Last year about this time, the Chief Risk Officer left the job and based on the article I read, it was not voluntary. That departure and the lack of capital at SVB tells me that the financial issues started last year. The Federal Reserve Bank is SVB’s primary regulator, not the FDIC. Plus, most supervisory issues that banks face are strictly confidential. And if certain senior employees are not doing a good job, a regulator can force the bank to get rid of them. This issue did not just happen overnight. But the Federal Reserve Bank is the regulator to focus on as to what happened leading up to the collapse.
A report from CNBC this week said that the bank paid out annual bonuses to its employees just before the firm was taken over by federal regulators. The report said the bonuses were for work done in 2022 and that they were in the works days before the bank collapsed. I hear nothing about this on the news.
What this lady won't tell you is more and more banks will fail as the Fed raises interest rates. The Fed is consolidating banks and power as we move towards 2030 and CBDC. This is part of the Feds plan and CBDCs will mean serfdom for us all
My goal is definitely to do all black everything as much as possible but One United is a perfect example of the need for reparations. Black banks can’t compete with white banks and that is deliberate. I attempted to mobile deposit a check with One United and it took a week to be deposited. That same mobile deposit through USAA would be in my account instantly. Also, I have an expectation of free checking without jumping through a bunch of hoops, that One United couldn’t accommodate.
That's actually pretty dope about what she said for people with over 250k… I just need to get over 250k… lol
Hi svb is considered (Boutique Banking) theses types of banks have been in the finance industry for decades there not interested in average customer deposits they cater to a different demographic
Great information Karen! Thank you for your platform.
I, personally, would have more issue with Black banks being fairly new banks rather than being operated by my own people.
LIKE PPP LOANS IS THIS JUST ANOTHER WAY FOR WHITE FOLKS TO AMASS WEALTH???
Fascinating.