Fun

Experts Predict More Bank Failures in the US Following Interest Rate Hike and Unsettled Banking Crisis

News Feed - 2023-03-28 03:03:08

Experts Predict More Bank Failures in the US Following Interest Rate Hike and Unsettled Banking Crisis


After the recent bank collapses in the U.S., a number of people believe that more failures are coming following the Federal Reserve’s increase of the benchmark interest rate by 25 basis points (bps). American journalist Charles Gasparino insists that Wall Street’s “low-rate” junkies are ignoring the U.S. banking crisis. Quill Intelligence CEO Danielle DiMartino Booth asserts that the banking industry is facing problems that “nobody wants to call a banking crisis.” Ignoring the U.S. Bank Crisis


There have been numerous opinionsand statementsfrom financial experts and officials following the failures of three major U.S. banks. All four major benchmark stock indexes ended the day in the green on Friday after the Federal Reserve raisedthe federal funds rate by 25 basis points two days earlier. Journalist, radio host, and financial commentator Charles Gasparino wrote an opinion editorial over the weekend that claims the “modern-day stock market is an addict.” Gasparino believes that higher rates are “painfully exposing” a “rot inside the banking system.”


He adds that commercial bankers took “wild gambles,” and the failures of Silicon Valley Bank and Signature Bank highlight the issue. “There will be others, as many as two dozen, I am told,” Gasparino explains. “All have balance sheets remarkably similar to SVB and Signature. If things continue to go south, they are ready to fold, too, guaranteeing a steep recession.” Coincidently, a paperpublished on March 13 by researchers at New York University shows that U.S. banks had unrealized losses of $1.7 trillion in Dec. 2022.


The reporter’s opinion editorial, published by the New York Post, also mentions First Republic Bank, and he insists that First Republic “made some of the same horrible portfolio choices as SVB.” Gasparino doesn’t believe people should “trust the addicts trading stocks.” Gasparino compares the recent stock market rally on Thursday and Friday to the “stupefied giddiness of a junkie who just got his fix whenever he hears lower rates are in the offing.” While traders may be wishing for lower rates, Fed chair Jerome Powell recently stressedthat “rate cuts are not in our base case,” and he insisted that “inflation remains too high.”


Author and CEO of Quill Intelligence, Danielle DiMartino Booth, envisions more bank failures to come as well. Booth discussed the subjectwith Kitco News lead anchor Michelle Makori, and she mentioned the issues surrounding the commercial bank First Republic. Booth noted that “we have not seen the biggest banks step up,” and many of these troubled banks are “sitting in no man’s land.” Further, Booth claims a precedent has been set after the Federal Reserve, Treasury, and Federal Deposit Insurance Corporation (FDIC) bailed out SVB and Signature.


“The precedent has been set, and it cannot be unset,” Booth told Makori. “As regulators, it’s not your job to pick winners and losers, but that’s the corner the [U.S. government] backed themselves into when they backed all of the uninsured deposits of Signature and SVB. We’re in the middle of a banking crisis that nobody wants to call a banking crisis,” Booth concluded. Tags in this story Assets, Bailouts, balance sheets, bank collapses, Bank crisis, bank failures, bank issues, Banking, banks, Charles Gasparino, commercial banks, credit, Danielle DiMartino Booth, debt, deposits, economics, Economy, failures, Federal Reserve, Finance, Financial Crisis, inflation, interest rates, Investments, Investors, lending, liabilities, Losses, Michelle Makori, Portfolio, profits, Quill Intelligence, Recession, Regulation, Regulations, risk, Stability, Stock Market, trading, Wall Street


What do you think needs to be done to prevent further banking crises in the U.S.? Let us know what you think about this subject in the comments section below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Analyst Predicts Gold Prices Might Exceed $8,000 in the Next Decade as Central Banks Lose Confidence in Foreign Currency ECONOMICS | 14 hours ago A Look at the Fed"s Recent Custodia Bank Denial and the Central Bank’s Push Back Against Narrow Banking ECONOMICS | 19 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleBinance Sued by CFTC for Alleged Violations of Trading and Derivatives Rules Next articleFirst Citizens Bank Acquires Silicon Valley Bank, Costing FDIC Deposit Insurance Fund an Estimated $20B Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year


The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.Oman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin

News Feed

Federal Reserve Bank President: Bitcoin Has No Legit Use Case — Crypto Is 95% Fraud, Hype, Noise, Confusion
Federal Reserve Bank President: Bitcoin Has No Legit Use Case — Crypto Is 95% Fraud, Hype, Noise, Confusion Minneapolis Federal Reserve President Neel Kashkari
BTC price slumps to $62K as Bitcoin bulls bet on M2 money supply
William Suberg10 hours agoBTC price slumps to $62K as Bitcoin bulls bet on M2 money supplyBitcoin offers a modest BTC price comeback after hurtling toward $60,000 in step with stocks worldwide.9004 Total views17 Total sh
US Court Sentences Cryptocurrency Hedge Fund Founder to 7.5 Years in Prison
US Court Sentences Cryptocurrency Hedge Fund Founder to 7.5 Years in Prison The founder of two cryptocurrency hedge funds in New York, Stefan Qin, has been sentenced to 7.5 years i
Previous Bitcoin Bull Run Patterns Suggest Current Run Could See a $160K Top, Possible $25K Bottom
Previous Bitcoin Bull Run Patterns Suggest Current Run Could See a $160K Top, Possible $25K Bottom While digital currency markets have increased significantly in
Ternoa, First NFT-Centric Blockchain, Releases Mainnet Setting to Disrupt NFT Economy
Ternoa, First NFT-Centric Blockchain, Releases Mainnet Setting to Disrupt NFT Economy press release PRESSRELEASE.Paris, France, 15 June 2022:Ternoais a layer 1 open-source blockchai
US regulator fines crypto fund $150K for illicit Bitcoin loan
Alex O’Donnell3 hours agoUS regulator fines crypto fund $150K for illicit Bitcoin loanIt’s part of the fallout from the industry-wide liquidity crunch triggered by FTX in 2022.  630 Total views33 Total sharesListen
Binance and Paxos-Backed Stablecoin BUSD’s Market Cap Climbs 22% in 2 Months
Binance and Paxos-Backed Stablecoin BUSD"s Market Cap Climbs 22% in 2 Months In mid-August, or 68 days ago, the market capitalization of the stablecoin BUSD was approximately $17.7
How to buy USD Coin (USDC) in the United States
Liza Savenko9 hours agoHow to buy USD Coin (USDC) in the United StatesUnlock the potential of stablecoins and diversify your portfolio with our beginner’s guide to safely buying USD Coin (USDC) in the United States.537
Shiraz Jagati10 hours agoToken adoption grows as real-world assets move on-chainFrom real estate and digital art to government bonds, tokenizing real-world assets is no longer a thing of the future.1171 Total views19 Tot
Crypto firms brace for intensified SEC, CFTC action after regulator warning
Prashant Jha10 hours agoCrypto firms brace for intensified SEC, CFTC action after regulator warningThe CFTC warned of another cycle of enforcement actions against crypto firms as investor interest rises.5633 Total views7
Decentralized lending platform Seneca exploited for $6.4M
Christopher Roark10 hours agoDecentralized lending platform Seneca exploited for $6.4MThe Seneca lending protocol was exploited through its ‘performOperations’ function, and over $6M of collateral was drained from it
Hackers Donate Bitcoin From Ransomware Attacks to Charities
Hackers Donate Bitcoin From Ransomware Attacks to Charities A group of hackers has donated some of the bitcoin it extorted via ransomware attacks to charities, c