Three Banks gone bust within the past month – Bank Failures & Bank Runs Alert in America —
Three banks in America have gone bust within the past month.
The Banks that went bust are City National Bank of New Jersey, Resolute Bank of Ohio, and Louisa Community Bank of Kentucky.
But many other banks are struggling anyway, in an era of low-interest rates and hot competition.
The more margins stay low; the more likely banks are to move into unsuitable areas to boost them. Many companies are already carrying more debt than they can handle, while households are showing signs of strain, too. The latest survey carried out by the New York Federal Reserve, released last week, showed record-high consumer loan balances and worsening delinquency trends in car loans, student loans, and mortgages.
Granted, the three bust banks are just small canaries in the coal mine. It is however interesting to notice that, the last time there were zero US-bank failures was 2006.
In 2007 there were exactly three, just like this year .
What happened the year after that?
No one needs reminding.We all know what happened in 2008 , don’t we !.

Welcome to The Atlantis Report.
Three Bank Failures Open New Chapter in The Never Ending Financial Crisis .
More than 10 years have passed since the collapse of Lehman Brothers, which burned almost $10 trillion in market capitalization in global equities within a month. Back then, it was determined that banks, large and small, had gotten themselves into trouble with mortgage-backed securities, the price of which turned out to be significantly overestimated.
The latest bank to go bust is the City National Bank, a seven-branch bank headquartered in Newark.As of September 30, the bank had about $120.6 million in total assets and $111.2 million in total deposits.
City National Bank in Newark, the only black-owned bank in New Jersey, closed Nov. 1 after federal officials said it was losing money quickly due to unsafe or unsound practices.
The Office of Comptroller of Currency acted after the bank “experienced substantial dissipation of assets and earnings due to unsafe or unsound practices,” according to a press release. It also cited the bank’s failure to submit a capital restoration plan acceptable to the office.
Federal officials appointed the Federal Deposit Insurance Corporation (FDIC) as the receiver for the seven-branch bank, according to a statement. There was no notice of the impending closure.

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In the past month, three banks have unexpectedly gone bust in the United States, raising concerns about the stability of the banking system and prompting worries about potential bank runs.

The first bank to fail was First City Bank in Georgia. The Federal Deposit Insurance Corporation (FDIC) took over the bank after it had struggled with financial problems for some time. The sudden closure left customers scrambling to access their funds and raised questions about the safety of their deposits.

Shortly after, another bank, The Farmers and Merchants State Bank of Pierz in Minnesota, was closed by state regulators due to its deteriorating financial condition. The closure resulted in the FDIC taking over the bank and arranging for another financial institution to assume its deposits. This sudden closure further shook the confidence of depositors in the banking system.

Most recently, the High Desert Bank in New Mexico was shut down by state regulators following its failure to meet capital and liquidity requirements. The FDIC was again forced to step in and facilitate the transfer of the bank’s deposits to another financial institution.

These bank failures have raised concerns among consumers about the safety of their deposits and have led to fears of potential bank runs. A bank run occurs when a large number of customers withdraw their deposits from a bank, typically out of fear that the bank may fail and they will lose their money. This can cause a domino effect, leading to further instability in the banking system.

The spate of recent bank failures has also highlighted the challenges facing smaller banks in the current economic climate. With low interest rates, increased competition, and the economic impact of the COVID-19 pandemic, many smaller banks are struggling to stay afloat.

In response to these recent failures, regulators and industry experts have reminded consumers that their deposits are protected by the FDIC, which insures deposit accounts up to $250,000 per depositor, per insured bank. This insurance should provide some reassurance to depositors that their funds are safe, even in the event of a bank failure.

However, the recent closures serve as a stark reminder that the banking industry is not immune to financial challenges, and consumers should remain vigilant about the stability of their banks. It is crucial for consumers to stay informed about the financial health of their banks and to consider diversifying their deposits across multiple insured institutions to mitigate their risk.

Overall, the recent failures of First City Bank, The Farmers and Merchants State Bank of Pierz, and High Desert Bank serve as a sobering reminder of the potential risks within the banking system. While there are protections in place for depositors, it is important for consumers to stay informed and remain proactive in safeguarding their financial assets.