What is causing the failure of banks?

by | May 19, 2023 | Bank Failures | 39 comments




Fox News contributor Liz Peek shares her insight on how Fed rate hikes are contributing to U.S. bank failures on ‘The Evening Edit.’

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In recent years, there has been a growing concern over the failing stability of banks. From foreclosures to credit defaults, many consumers have suffered significant financial losses due to bank failures. So, what exactly is causing banks to fail?

One of the primary reasons why banks are failing is due to a lack of regulation. In some cases, banks have been allowed to operate without proper oversight, leading to risky investments and mismanagement of funds. Additionally, deregulation has allowed for mergers and acquisitions, resulting in larger and more complex banks that are more difficult to manage.

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Another key factor contributing to the failure of banks is the global economic crisis. As markets fluctuate and economies weaken, banks have been forced to take significant losses on their investments. This has increased the chances of insolvency, leading to bank failures.

Furthermore, technological advancements have also played a role in bank failures. With the rise of digital banking and online fraud, banks have faced significant threats that were previously unknown. Cybersecurity is now a key priority for banks, but many have struggled to keep up with the fast-changing landscape of technological threats.

Lastly, the behavior of financial institutions and their executives has also played a role in bank failures. Scandals such as the Libor manipulation scandal and the Wells Fargo fake accounts scandal have eroded public trust in banks and highlights the systemic issues of a culture of greed and corruption.

In conclusion, there are several factors contributing to the failure of banks. Whether it is a lack of regulation, the global economic crisis, technological advancements, or unethical behavior, these issues are complex and require immediate attention in order to prevent further losses for consumers. It is essential to hold financial institutions and their executives accountable for their actions, while also implementing proper reforms to ensure the stability and security of the banking industry.

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39 Comments

  1. Michael T

    Transitory … nothing to look at here … and it was Trump's fault anyway.

  2. Alan

    It the democrats greed .

  3. Dan

    Mitt Romney sides with the Democrats—Why put him on?

  4. Abdi Abdi

    Help me money 200 billion us dollars support money every months support money every years support money Abdullahi Hassan Mohamed Ibrahim

  5. Anonymous

    Banks are a massive ponzi scheme. When you give banks your money, usually from a pay check, they are not putting that money in your bank account or some sort of digital vault, they are immediately lending it out and you just have to trust the bank will give you money when you want to pull it out. It is never your money, it is someone elses actually if you follow the digital trail. It is a giant ponzi scheme that has only survived until now because people have mostly trusted banks. Now people know what is going on more than ever. The entire financial system is basically one giant crime scene.

  6. Team Before Self

    The President doesn’t care. He hasn’t much time left

  7. Joseph Darlington

    Hey Mitt, maybe now you'll wake up and stop being the Democrats' lap dog!

  8. Josh Strong

    If the debt ceiling doesn’t rise Biden will be a one term president

  9. KTM

    Greed destroys

  10. KTM

    The end results of the Trump Era . Finally hitting home plate.

  11. Lemarie Cooper

    I am curious as to whether individuals who underwent the 2008 financial crisis had a less arduous experience than I am currently enduring, given that prevailing market conditions are causing me considerable distress. Specifically, my portfolio has incurred a loss of over $27,000 this month alone, and my profits are dwindling. I am concerned that my retirement plans may be jeopardized, as I am unable to augment my stagnant reserves.

  12. Andres Fernandez

    Simple they want to consolidate centralized banking power before instituting digital bank currency.

  13. Jim P

    Banks are failing because our government wants them too.
    Enter- digital money. Total control over your money.

  14. David Kovie

    Whatever happened to the FTX corruption /crook that should go to jail along with all those that participated

  15. David Kovie

    The collapsing financial market in the US is again all part of the China plan that Biden is playing for them and unfortunately, by the time everybody wakes up and realizes it, we’re going to be another piece of land that China owns in other words, the United States of China

  16. Jesse blue crypto

    The Democrats don't wanna get it done. Because they can blame it on the Republicans for not passing the debt increase. So they're going to stick to their guns and ride it out until the Republicans have to increase the debt because otherwise they're gonna get blamed for not even though the Democrats won't negotiate. It's their way or the highway president Biden is so corrupt and he is going to ruin America if he hasn't already. Don't let him have another four years to finish the job in other words make America a third world country

  17. Harry Chu

    J Powell must answer for his crimes against the American People.

  18. johnstarks32

    I wish they would stop bringing up that temporary enhanced unemployment being the reason for rising debt… That was temporary assistance to people that have worked and paid taxes THEIR WHOLE LIVES. Many of whom will pass away before they reach retirement age (Social Security) The government routinely participates in corrupt backroom deals, and also votes to give themselves raises even when they're doing a terrible job! lol. And then have the nerve to say that the middle class is the problem?? I don't think so..

  19. Kevin

    Has anyone read the Bible? For crying out loud don’t wait til it’s too late to believe on the Lord Jesus Christ and repent for your wretchedness.

  20. Henry

    The Host lady need's to stfu and let her guests talk ! Shows how unqualified she is !

  21. RALPH MALONE

    Let the banks fail they're corrupt anyway

  22. oaba201

    Watch these Banks that are failing PackWest, Western Alliance, Zions, Comerica, KeyBank

  23. Edward Powell

    White house is compromised

  24. Randy Mullins

    It's common sense to most ethical and responsible Americans; they're fully corrupt and complicit with this treasonous regime of Biden (puppet) and these cancerous elites!

  25. Kolo Johansson

    Everyone take out your cash, while you still can. Same B.S starting to happen in Australia. They minimised how much you can withdraw now. This is our money not the banks, to tell you how much we can take out.

  26. Bieh Pham

    Agenda 2030.

  27. Kevin Rice

    Tucker sank Fox news Network kaput hahaha aaaaaiiiiiiiieeeeeee…..

  28. Kevin Rice

    Have more Banks than fast food joints…let them fail…. to many Banks now.

  29. BobMex

    Biden has the lowest inflation in the west.

  30. Coffee Man

    It's the new American Way, I'm glad that the American people are suffering because they voted for Joe Biden. Crime in the streets, crime in the government & crime in the Joe Biden's family. I'm going to go out start my own crime spree.

  31. Coffee Man

    The Build Back Better still under the demolishing faze.

  32. James Norwood

    Biden like Mr. Magoo keeps crashing his car while remaining unscathed. While those around him are the ones being injured; paying tha price.

  33. Mike Seigle

    High crime in west coast cities has killed commercial activities. All these banks are in very Blue states and overexposed to the abandonment of commercial building projects in the Blue cities. The bank runs have not hit places like Texas or Georgia, but almost all the bank failures have been major players in California.

  34. James Norwood

    Yeah quite right, for the democrats it's become crucify Trump syndrome. Last refuge of scoundrels. I mean democrats. You know like Joe Biden; he's one of those.

  35. James Norwood

    Ah high school economist could have done ah better job. Yellen …Ah joke! Reminds me of an elementary school substitute teacher. Simply marking time and sore that she's not being paid enough.

  36. RF Bedell

    Thanks BiDumb !!!

  37. Patti Farrugia

    Banks are failing…and they charge us for everything and anything

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