186 US banks are facing a collapse in the wake of the implosion of Silicon Valley Bank, and that number is likely higher, according to top economists per the Wall Street Journal.
The concerning number comes from a recent economic study published earlier this month.
Treasury Secretary Janet Yellen admitted that not all uninsured deposits would be protected if more banks fail, only banks that pose systemic risks.
However, regional banks stand no chance.
From CoinPedia:
The study evaluated individual US banks during the Federal Reserve’s swift rate-hike campaign, assessing asset books and market value losses. These assets – including Treasury notes and mortgage loans – are decreasing in value, and banks are struggling to keep up. This could be the beginning of the end for many financial institutions.
The study also analyzed the banks’ funding percentages, with a focus on funding derived from uninsured depositors, those with accounts holding over $250,000. The findings suggest that if even half of these uninsured depositors were to withdraw their funds rapidly from any of these 186 US banks, even insured depositors might face impairments. This is a ticking time bomb that could spell disaster for the entire banking industry.
However, the 186 US banks facing collapse is a conservative estimate.
War Room host Steve Bannon read some of the report on Friday:
Watch
Last week, Home Depot co-founder Bernie Marcus warned Americans to “wake up” following the collapse of Silicon Valley Bank (SVB).
“I can’t wait for [President Joe] Biden to get on the speech again and talk about how great the economy is and how it’s moving forward and getting stronger by the day,” Marcus told Fox News.
“And this is an indication that whatever he says is not true,” he said.
“And maybe the American people will finally wake up and understand that we’re living in very tough times, that, in fact, that a recession may have already started. Who knows? But it doesn’t look good,” Marcus added.
The Silicon Valley Bank collapse was the second biggest bank failure in U.S. history since the 2008 financial crisis.
Billionaire Hedge Fund boss Bill Ackman echoed Bernie Marcus’s remarks last week warning of a complete economic meltdown.
“Our economy will not function effectively without our community and regional banking system. Therefore, the Federal Deposit Insurance Corporation needs to explicitly guarantee all deposits now. Hours matter,” Ackman warned.
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