Why Hundreds Of U.S. Banks Are At Risk Of Failing
Vložit
- čas přidán 16. 06. 2024
- Across the U.S., hundreds of small and regional banks are feeling stressed and may be at risk of failure. Of about 4,000 U.S. banks analyzed by the Klaros Group, 282 banks face stress from commercial real estate exposure and potential losses tied to higher interest rates. Most banks facing risks are categorized as small, or community, banks. Though the risk is less systemic compared to the Big Banks, community and regional banks are an important source of credit to local businesses and governments. “There’s no doubt in my mind there’s going to be more bank failures,” former chair of the U.S. Federal Deposit Insurance Corporation Sheila Bair told CNBC. Watch the video to learn more about the risk of commercial real estate, the role of interest rates on bank balance sheets and what it may take to relieve stress on banks - from regulation to mergers and acquisitions.
Chapters:
1:40 Chapter 1 - Stressed banks
4:56 Chapter 2 - Commercial real estate
6:21 Chapter 3 - ‘Unrealized’ losses
7:51 Chapter 4 - Rescuing banks
9:58 Chapter 5 - Regulation
11:57 Chapter 6 - Bank failures
Produced and Edited by: Andrea Miller
Reporting by: Hugh Son
Animation: Christina Locopo
Supervising Producer: Lindsey Jacobson
Additional Footage: Getty Images
» Subscribe to CNBC: cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: cnb.cx/SubscribeCNBCtelevision
About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Want to make extra money outside of your day job? Take CNBC’s new online course How to Earn Passive Income Online to learn about common passive income streams. Register today: cnb.cx/3Iwblnk
Connect with CNBC News Online
Get the latest news: www.cnbc.com/
Follow CNBC on LinkedIn: cnb.cx/LinkedInCNBC
Follow CNBC News on Instagram: cnb.cx/InstagramCNBC
Follow CNBC News on Facebook: cnb.cx/LikeCNBC
Follow CNBC on Threads: cnb.cx/threads
Follow CNBC News on X: cnb.cx/FollowCNBC
Follow CNBC on WhatsApp: cnb.cx/WhatsAppCNBC
#CNBC
Why Hundreds Of U.S. Banks Are At Risk Of Failing
It was a very bad decision to remove the Glass-Steagall Act in the late 1990s, which led to the spectacular failure of huge banks during the financial crisis of 2007-2008. To prevent another disaster, Dodd-Frank and this statute both need to be reestablished right away. What happened with these banks is only the beginning of what will happen if nothing is done to address the current situation.
In my opinion, some of the banks was attempting to restructure their bond portfolio, which involved selling their low-yielding bonds despite the potential loss, and compensating for it by buying higher-interest-rate bonds on the open market.
Despite the economy's resilience thus far, the banks scenario cautions that the effects of Federal Reserve rate hikes persist. During such periods, investors must remain alert to anticipate what comes next. It is not necessary to act on every prediction, so I recommend seeking the guidance of a financial advisor, which has been my go-to advice for some time now.
I'm intrigued by your experience. Could you possibly recommend a trustworthy advisor you've consulted with?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Marisa Michelle Litwinsky” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
There seems to be skepticism amongst investors regarding the Federal Reserve's plan to continue increasing interest rates until inflation is stabilized. As for myself, I find myself at a crossroads, uncertain whether to invest $150,000 into my stock portfolio. I'm seeking advice on the best strategy to capitalize on this current market.
I think the safest strategy is to diversify investments. Like spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Viviana Marisa Coelho is her name. She is regarded as a genius in her area and works for Empower Financial Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Big government spending on sweetners and unicorns = higher taxes = higher inflation = government subsides to quell inflation, The rising interest rate can surely control inflation, but won't prevent erosion of the eroding purchasing power of the US dollar. I have learnt my lesson this time. The banks can't be making money off my money, while inflation eats into it. I have set aside 650k to invest in the stock market now, since that keeps up with inflation, but I don't know how to get started.
Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
Svetlana Sarkisian Chowdhury is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Wow, you guys don't seem like bots whatsoever.
Sadly, banks continue to stumble, mortgage rates is on the rise with higher imports and lower exports, yet the FED is to lessen cost. So, where do we grow and safeguard our money now? something will eventually break if they keep raising interests and quantitative tightening.
ideally, you should consider financial planning to get the best results with your money, notwithstanding economy situation
Well agreed, I'm quite lucky exposed to finance at early age, started job at 19, purchased first home at 28, got married shortly afterwards to raise kids early. Going forward, got laid-off at 40 amid covid '19 outbreak, immediately consulted with an advisor in order to stay afloat and after subsequent investments, I'm barely 25% short of $1m ballpark goal as of today.
that's incredible! would you mind if I vet your advisor please? started investing in stocks november 2022, but not confident to make the correct investments as of now, seeking professional help to achieve my financial goals
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Marisa Michelle Litwinsky for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Interesting. I am on her site doing my due diligence. She seems proficient. I wrote her an email and scheduled a phone call.
The bank crisis isn't over yet, and experienced individuals know credit crises don't end quickly. Some find it amusing that some think it's resolved, but in reality, we're headed for a major economic downturn due to this credit contraction.
After the '08 financial crisis, I've learned not to trust corporations. Since 2020, I've been investing with a financial advisor and have had no major losses, so I'm not going back to relying solely on banks.
Many overlook that banks are profit-driven businesses. I don't trust keeping a large sum in a bank, instead, I invest with guidance, enjoy the benefits, and save for retirement.
Your fiduciary seems highly competent. May I ask if you are still working with the same fiduciary, and if so, could you share how I can contact them?
3
Vivian Carol Gioia is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
With the US dollar losing value to inflation and other currencies gaining traction, uncertainty looms. Yet, many still trust in the Dollar's perceived safety. Worried about my $420,000 retirement savings losing value, I seek alternative security for my money.
With my demanding job, I lack time for investment analysis. For seven years, a fiduciary has managed my portfolio, adapting to market conditions, enabling successful navigation and informed decisions. Consider a similar approach.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Linda Aretha Reeves is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment
I appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.
Avert too-good-to-be-true con tricks. Consult a fiduciary counselor; these professionals are among the best in the business and offer individualized guidance to clients based on their risk tolerance. There are undesirable ones, but some with a solid track record can be excellent.
So true ! Perfectly said
Just buy the stock with 2 Billion in Cash, positive earnings, and 1900 p/e ratio.
One red flag is when banks start to cut their risk management units during end of cycle. Thats like firing your fire fighters just before a forest fire.
And..the real estate market slows down. Despite all tthe housing INVENTORY, less buyers are in the market and or not getting approved without 35-45% down payments. Those lending paramaters TAKE a lot of buyers out of the market. Lending guidelines are FAR MORE RISK AVERSE, in their lending matrix.
Yeah, but in the short term it made the line go up, so whats the problem? /s
Buy SILVER TODAY 🍿🤓🚀🚀🚀🚀🚀🤯🚀🚀🚀🚀🚀🚀🚀🤯🤯🤯🤯🤯💰💰💰💰💰💰
Or be bailed in
The bigger megabanks like JP Morgan will just swallow them up.
That was the plan all along.
and pay them $0 per share
Exactly
You’re right
I hate it cuz the small banks offer better rates.
Unfortunately right
Hey! I remember this one! we had one of these in 2008
That worked out great in the end (for the banks)
Except that was residential and not commercial.
Yes and this time is going to be scarier.
Bankers will be rescued. Wall street has lobbyists. Main street doesn't
Can finally buy a house cheap.
It's fine they will fire low level employees and give millions in bonuses to higher ups and then have the tax payer bail them out 😆
Moral Hazard - When people know they are insulated from the consequences of their mistakes they tend to keep making them.
Tend sure. Also helps them get far enough to get tired of making the mistake if they last long enough.
Show me the incentives and I will show the outcomes...
Instead of bailing out the banks, couldn't they just be nationalized? I understand that the government may have to take the weight to prevent economic collapse, but why does it need to give the money to the very people that caused the problem? If the argument is that it must save the service, then save the service, not the owners. Basically, why not just save "the bank and the consumer" instead of "the investors?"
They could even make it temporary. Nationalize the failing bank without a dime for the investors (they would lose money anyway, this way they just don't gain anything extra), and then when it is stable again the government could privatize it to the highest bidder.
@@guilhermesavoya2366when they do nationalize you will whine about monopoly. And the bail out was a loan which was paid back with interest. Sound policies are what keep these organizations in check not "nationalization" or whatever socialist mambo jumbo. Because at the end of the day, the government can't nationalize all banks. Blame the orange clown who rolled back Obama Era policies that resolved all these issues.
Covid and the WFH explosion were black swans. Mid size banks should have built a better moat but who knew commercial real estate was about to collapse
By understanding how cash and banks work, it becomes clearer why they must ultimately fail. Ever heard the saying cash is thrash? Just hold your money in more stable and lucrative ways and save yourself the eventual stress and heartbreak.
Easier said than done. Besides them, what are even safer options? Are we to start burying our money or what?
Sorry to jump in, but there are a lot; gold, stocks, stable businesses etc. I know this cos personally I made my first million late last year from stocks and bonds which I have used to set up and put into other things. The only downside is that you could also lose your funds which is easily remedied by using an FA(who are way cheaper than most people think) or making very thorough inquiries. Good luck.
hi, I have actually thought about this but the risks have always put me off. please, what are the steps for getting an adviser?? like a really good one
You should start by looking out for those from known firms and good track records. You should also make sure the person is licensed. Personally, I use Kelly Matwick. She's good and you could also look her up.
fr man... after what happened last year, I don't trust banks no more
It's almost as if the push for continous YoY growth and pushing consumers to increase their spending isn't sustainable.
Consumer Debt at $17 trillion,
does not actually help the GDP.
But the GAO seems to assume
some miracle will make the US Currency
survive?
They count all purchase, even Credit Card ones.
Spend your money or communism wins!!!
fiat + central banking system with irresponsible government spending
What are you talking about? Infinite growth is a wonderful thing with no bad outcomes. Just ask cancer.
Banks during the depression: "Lock the doors! We are broke asf! Turn off the lights!"
Average American: 💀
And yet nothing will change
Opportunity comes during chaotic time. They will never let a recession go to waste…
If only there was some new international crypto currency everyone could buy in ETF form… /s
Inflation will. Every bail out involves buy bonds way over market values. The effect is pumping more money into the market like easing.
😂ofc,it is capitalism ill
They will kick the can down the road.
Here comes "Too Big To Fail" Part 2
Not really. Only banks that didn't account for the fact interest rates could rise are at risk.
@@swaggerythat is every single bank in US, because the government will bail them out, they know that, so there is no risk of losing everything, no consequences of bad behavior.
Correct. The NY bank that just failed passed its stress test. This is BS - All is well, all is well.
More like: yep, small enough to fail.
@@swaggeryThe banking system is intertwined. One catches a cold and it spreads.
You get a bailout and you get a bailout, and you get a bailout and you get a bailout and you
If you look under your seat mr billionaire banker sir, you in fact also get a bailout
Can I get a lap dance instead
WOOOOOOOHOOOOOOOOOOOOOOOO
They won’t bail out the regional banks, they only bail out the big guns
That’s why they’re talking about private capital
If you've ever wanted to know what a massive debt bubble looks like, this is it. So many things are about to break simply from a return to historically normal interest rates. In a healthy economy where everyone can actually afford what they're buying, 5.5% interest shouldn't break you. The reality is, consumers and institutions are stretched to their limit and went on an excessive debt binge after years of net negative interest rates. In the first quarter of this year, we saw GDP growth decline while inflation was still on the rise despite this and household incomes not changing significantly. Meanwhile consumer debt and credit card balances have exploded so far this year. This almost certainly means price increases and what little economic growth we have (1.6%) are being fueled by debt, which is completely unsustainable and an ominous sign for the economy.
And the biggest bubble of them all - $35T in public debt. The federal reserve can’t even raise rates like Volcker because the country simply can’t afford it. US Government needs to curb their deficit spending and raise taxes, it’s about time.
Yeah Well maybe people could start moving out of their Parent's Houses.
Wrong
@@NOBLEFILMS1987 and how will they afford it? Most people can’t even afford a studio apartment.
This dude came to the same conclusion I did and the response is that people should move out of their parents house lol... We are in a debt economy with start up companies selling away their businesses to venture capitalist and then they come in and run the entire business to the ground not generating any profit, pretty much sustaining themselves off of investors. A lot of BLOAT that do not generate any income in the workforce like ESG/DEI, government too slow to keep up with economics regulations in the modern rapid tech advances.
I saw someone call this 5 years ago. The community banks give loans to small business in the community. JP Morgan and the big banks only care and give loans to mega corporations. The failing of community banks is a consolidation of power and bad for the country and everyday person
What happened to SVB is really scary, and goes to show that no corporation, however big, is immune to collapse. I have always had a deep-seated mistrust for corporations. I have plans to pull out most of my money, but don't know what to do with $350k sitting idly.
Biden is worst thing that happened to us
TRUMP 2024
Having an FA is the best way to go. Based on a direct encounter with a CFP named Julia Hope Marble I can say with certainty that their skills are excellent. She helped raise over 580,000 in 18 months from an initially stagnant portfolio of 150,000
Foreign trusted banking institutions such as the Swiss .
buy gold
I would love to hear how Credit Unions are doing.
Massive credit union near me, just got approved for a merger with another huge credit union, and expanding heavily while the bank I work for seems relatively stuck in place, or at least expanding slower.
@@anthonywillick9630 its almost like Socialising banks to server for its customers will allow trust and easier time in times of desperation and fear.
Fractional reserve banking. It's like we learned NOTHING during the last econmic collapse lol.
Those people are probably diseased or old right now, and if they are alive they probably don't care and they are enjoying retirement.
Fractional reserve banking isn't the problem. The risk management is.
Well, the banking system has learned like a child that if they fail, daddy will just save them. Hopefully daddy doesn't put himself at risk to save his kids.
@@michaelm.3641 there's actually no problem. Money is neutral and smart money always looks twice before parking any amount of money above the FDIC limit. Dumb money or OPM like at Silicon Valley bank is the exception. Let the markets sort it out, as Andrew Mellon wisely said in the 1930s.
Nothing to do with fractional banking
For years banks have been paying less than a percent on the assets of depositors. They were raking it in. Now they are forced to pay higher rates and may go under, risking our assets. This is what happens when banks are deregulated. One just can’t trust businesses to do the right thing.
But but capitalism!
It’s going to take us longer than we’d like to learn our lessons and we may never learn them because there’s a lot of power and money stopping it.
@@willw7743another sub 100 iq voter that clearly doesn't know Capitalism actually means.
I trust them to enrich themselves at our expense. Go America...
@@willw7743 Nothing can save an intrinsically corrupt banking system from collapse, but they will try to make it look solvent by absorbing all your money and issuing you more debt and a chip to access it.
Only solution is to End the Fed, return to sound money and become your own banker. Its the only way to be sure.
We don’t have capitalism though. We have a corporate welfare state disguised as capitalism.
Not bailing out these banks will lead to an economic depression, but that’s what the world needs otherwise nothing will change. Banks will just take more risks and consolidate further.
you don’t even realize the consequences to that
The banks should've lived within their needs 🤷♂️@@isaiahX7
Instead of bailing out the banks, couldn't they just be nationalized? I understand that the government may have to take the weight to prevent economic collapse, but why does it need to give the money to the very people that caused the problem? If the argument is that it must save the service, then save the service, not the owners. Basically, why not just save "the bank and the consumer" instead of "the investors?"
They could even make it temporary. Nationalize the failing bank without a dime for the investors (they would lose money anyway, this way they just don't gain anything extra), and then when it is stable again the government could privatize it to the highest bidder.
The global majority is moving away from the ISD. They won’t experience the depression.
@@isaiahX7 The alternative is the destruction of the currency and ultimately the country. As bad as great depression II is, the alternative is far far worse. This is something that a decade ago we thought would be for someone 20-30 years in the future to worry about. Well, we're about to be forced to confront reality a lot sooner than anyone expected.
Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $560K for sometime now, my major challenge is not knowing the best entry and exit strategie;s ... I would greatly appreciate any suggestions.
Although my knowledge of the business is limited, it seems that this is the ideal time to enter the market based on my understanding of supply and demand in the economy. The consistent price variations, which shouldn't be an issue, are the only thing stopping me. But I really need a counselor; could you please assist me?
thank you for sharing; I just looked up the broker you recommended on Google and was really impressed with her qualifications. I will immediately send her an email.
consider yourselves lucky if you have a market over achiever. it's why I'm very confident in the future performance of my P&L
Though I started with as low as $15,000 AUD actually because it was my first time and it was successful, She's is a great personality im in Australia
Fraudsters!
Is there a way to see the actual list of stressed banks? I'm interested to see the actual banks that are struggling.
They wouldn’t because it’d cause a bank run. If you saw a bank on a list that you work with has a chance of collapsing, would you keep your money there? Nope.
@@LaSombraa Good point
No, but look at banks offering high cd rates
Remove your money from bank and buy gold ?
@@prashanthb6521 Tell your Congrescritter to End the Fed and give everyone sound money!
* traumatic '08 memories intensifying *
THAT MORONS IN THE WHITE HOUSE HAVE TO STOP PRINTIG MONEY.
They want the smaller banks to fail so they can be brought out by the bigger banks. Because they want a digital dollar and they want to get rid of paper money also we are seeing the beginning of a new monetary money system. Why do think so money countries are buying gold lmao lol. The US will lose its status as a reserved currency and the elites want the US economy to fail because it's impossible to pay our debts back. The elites will transfer their wealth to the new financial system while American citizen will be responsible for our 34 trillion dollar deficit lmao lol
It’s not that bad. It’s going to be an apocalyptic scenario though for commercial real estate.
I was in 5th grade when that happened and any similar situation would be a lot worse since youth worldwide are not doing doing well and home prices would only go down to their actual worth
Why is Google always deleting my comments
Why is it that US banking is a continuous dumpster fire?
Because they want to take the whole world down with them.
THE FED.
we are repeating the exact history during the early 1900's which saw repeated bank failures until Glass-Steagall was enacted in 1932 and there were almost no bank failures for ~70 years until they got rid of Glass-Stegall in 1999 and then all the banks started failing again and within 10 years the great financial crisis. Dodd-Frank was worthless. This will continue until Glass-Steagall is brought back.... but a slower economy might be the result.
The FED bails out banks, so there's no real risk to anyone. At least at the bigger banks. They can take all the high risk/high reward investments and YOLO it knowing big daddy government will bail them out....again
Sarbanes oxley act not being enforced. Banks just gambling with depositor money and doing whatever TF they want.
You work for 40vrs to have $1m in your retirement, Meanwhile some people are putting just $10k in a meme coin for just few months and now they are multi millionaires. I pray that anyone who reads this will be successful in life.
To the
Bitcoin propaganda
BOT Alert
The problem is banks are allowed to report earnings with mark to market which makes banks appear more solvent than in reality. Also first republic bank even with JPMC cash infusion still failed.
Marked to market largely resulted in banks showing worse positions due to unrealized losses in securities portfolios.
If banks are trying to use mark to market rules. Bringing 40% to table at loan closing should signal to consumer the homes are highly inflated. The caveat emptor should be hold off on loan. But. What's the answer to rent higher than mortgage payment as foreclosed homes are now rentals for the very corporations taxpayers bailed out.
Citi and Bank of America were bailed out in 2008. The big banks need to be broken up over time as they pose the real threat!
This is a result of interest rates being kept too low for too long and corporate office space being undesirable.
12 years ago, I remember seeing some old dude calling it out on tv. That western economy has its ups and downs, that's normal. But when you should start getting scared as it starts to doing it to often and to fast in a short period of time . Like towing car that start to rock before you know it you crashed.
"Hard Landing" becoming more likely, just happing in slow motion.
Exactly. The soft landing was always a unicorn....
This just involves the banking sector while a hard or soft landing affects the entire economy. It’s called greed and bad management on part of the banks.
Nearly 5000 banks are in the US and only hundreds are struggling…sounds like a controlled demolition to me
It is like a plan.
You guys realize if you create fear it increases the likelihood of a bank run
But... views... 😮
U.s. media always be fear mongering, rather than report its been evident for years, the music, the tone and don't forget the headlines.
It’s more than time for a complete reform.
Who’s gonna do it?
It's just a matter of time. It all will come down burning. The real issue is that people are broke, stagnant wages. Americans maxed out when it comes to borrowing and spending money they don't have...
Let it come down, we need to kick out this corrupt debt as money private Federal Reserve and return to sound money. People don't realize how much better it would be. US has been bankrupt at least since 1933!
I hear you, things can feel pretty overwhelming, especially when it comes to financial struggles. It's tough when people are dealing with stagnant wages and financial stress. Remember, you're not alone in feeling this way. Stay strong, my friend. 💪
Thank you for sharing this!
Thank You you are the best mentor and best strategy videos keep sharing learning a lot from you😆
Wow, it's real estate related?
Is there a single major problem in this country that isn't ultimately caused by inept land management?
Y’all know what this means! Home ownership’s bout to be back on the menu boys.
This has nothing to do with homes. This is about commercial real estate
Thank you for the information! 🤝
the buck stops at the FED, but unfortunately the FED itself is also a failed bank (trillions of dollars in debt). China and Japan have stopped bailing the FED out. Also, lenders have been demanding more interest on the bonds. minus inflation, bonds pay peanut. US pays 1 trillion dollars in interest for every quarter. this is unsustainable.
Wall Street try to paint it as all well and good and stock market skyrocketing every month. The consumer is overstretched and will pop any day. Starbucks earning shows how consumer behavior and spending is changing . 5 % decrease over a year is a lot
Do you believe a 5% figure ? No way its more like 25% guaranteed
McDonald's as well.
This is the result of allowing the big mega banks to form post 2008.
Socialising the loses, privatising the profits.
Simple solution on the bonds with lower rates. FED should prioritize buying up and honoring such BONDS from banks at their face value.
The mess was created by the FED mis-categorizing the inflation as NOT being transitory thus hiking up rates and can only be solved by them.
What I feel many of these comments and this video fail to mention is how community banks are massive parts of their communities. They are trusted face for a home loan, a kind teller who asks about your family as they deposit your paycheck, the sponsor of your child’s sports team, and so many other things to the places they call home. To lose them, would just be giving business to larger and faceless banks that have no stake in you or where you live.
Why do people who don't know how to do banking deserve to do banking? There are other people in the community who could do it. Who actually deserve to be trusted. It isn't either-or. We don't actually have to choose between a bunch of incompetent local bankers and a bunch of faceless international bankers.
That's what they want! We live in a capitalist society, like monopoly the game
I don't buy this. I've heard the opposite, to find smaller community banks, which have more strict lending policies vs the national banks that lend to anyone. To Mr. Powell, of course the big banks won't fail because they'll just get ANOTHER bailout.
This is based on a Klaros report which screened regulatory filings of banks and found just under 300 institutions whose CRE concentrations exceed 300% of capital. This is a very real concern
All the capital raised to improve balance sheets has (1) been charity (2) been larger banks
CNBC among others ignored the 2007 banking crisis among the majors until the 2008 collapse. In an average years hundreds of small banks close.
For profit banks should be outlawed
This is possibly the worst idea ever
Greatest economy ever.
By YouSum Live
00:00:00 Small and regional banks face stress from real estate loans.
00:00:21 Rapid interest rate hikes threaten borrowers and banks.
00:00:41 Regulators issue confidential reports to at-risk lenders.
00:01:00 Private capital infusion can prevent widespread bank failures.
00:02:01 Community banks hold significant assets comparable to large banks.
00:02:23 Analysis focuses on banks with high commercial real estate exposure.
00:06:26 Federal Reserve's interest rate hikes impact bank asset values.
00:07:45 Banks face challenges with interest rate risk management.
00:10:08 Mergers and acquisitions in the banking sector face regulatory scrutiny.
00:12:29 Expectations of gradual bank failures over the next two years.
00:13:31 Policy priorities differ for smaller vs. larger banks in crises.
By YouSum Live
And this is why you need to "get back to the office"😂😂😂
This is why you don’t, so commercial real estate can be cheaper for small buisnesses.
Nobody truly needs to go back to working in an office...
@@tomsam1314 Enjoy getting your jobs replaced by AI soon lol
@@heinrichkoenig8849 what’s that got to do with anything?
@@heinrichkoenig8849YEAH! HAHA!
The reason there are fewer mergers is because if a healthier bank merges with a stressed bank they have to take on all of their debt, stock, and unrealized losses of the stressed bank. If a bank fails the healthier bank gets a sweetheart deal from the FDIC with a lot of forgiveness on debt and stock.
Scary stuff.
This is the reason why I’ve been storing my wealth in everything else other than fiat cash and the banking system. Absolute poor management of cash reserves.
In other words, we're about to see a replay of the 2008 banking crisis. Please, let's not lose faith yet in our great government.
Nah big banks take over the assets and deposits as these banks fail.
Well, last time the crisis was attached to real-estate; variable rates on single family homes.
This time it's attached to commercial real-estate, rental markets, and brick/mortar leases.
Single-family homes will only receive a distal effect from the fall-out; thank God.
@@vladimirofsvalbard9477 different issue all together. Banks created market back securities and didn’t grade the debt correctly. Basically when they aggregated these securities they made the high risk ones better rated. That kind of stuff doesn’t happen now. That was going on since the 1980s.
People will lose their jobs. How will they afford to keep their homes. I don’t think you understand macroeconomics. We are talking billions of losses. You think everyone’s just going to say “oh well”. No. It’s called a fiduciary duty to investors.
@@bobroberts2217no body is loosing money. The feds take over the bank, the deposits, and the assets and tells another bank on X days they take over and make it a branch.
We gonna be just fine. What? 😮
4:50 The FDIC only has about 4% to cover all deposits of this size
1:53 Asbury Park lol
Postal banking systems, emphasis on Internet banking tools and phone/ chat support, and more credit union systems.
Oh no. That will mean less profit for the “investors/capitalists”. Will never happen.
Customer accounts need little if any maintenance especially when the infrastructure is in place
"Chancellor on the brink of second bailout for banks" 👀👀
Everything is going to be fine 😃
That last sentence represents everything wrong with the financial industry and government.
Banks need to "experiment" and "if a billion dollar bank fails it doesn't effect the economy"
Banks need to store money and that's it, there's no innovation or experimentation to be had and that idea needs to be nipped in the butt.
If a billion dollar bank fails that's until levels of inflation, so many jobs, so much financial hardship for those who use the bank and so many other issues. To someone in New York this is a quirky little experiment that makes a number on a spreadsheet but in reality it's people's livelihoods they're playing with.
You did are not gods and shouldn't ever feel like you are like that last guy clearly thinks he is, governments are supposed to stop them having that power but they're corrupted as well.
How would a bank earn any revenue to pay interest rates for depositors if all they were to do is store money?
@@danielcarrapa3632 charge a fee to consumers sort of like how they use to. Considering money is almost entirely digital now it should be a pretty cheap fee especially if there's solid competition.
@@AJonVolk I think what you're really missing is the game that most people are oblivious to. The US population has no will or desire to bail out banks again, the big banks are completely aware of this, and the FIDC is also aware of this. So how do you make a bunch of money from people being angry at you. Well you take some of your portfolio, create a few smaller (less than a billion) banks and have them play stupid games with obviously stupid prizes. Run up both assets and debts to the Nth degree on the balance sheet and then let those banks fail. The FIDC will have no ability to "bail" out those banks and the "people's" assets are in danger, so they will run to you, the large bank and offer all of the assets from the dying bank to you at a discounted rate AND you get to divest the debts. Boom you just earned a BILLION of assets for 500 million and none of the debt that was piled up.
It would be funny if it wasn't creating massive blank spots inside the balance sheet. In the real world when you clear out all of the dirt underneath a city sinkholes randomly appear, it's similar in economics. All of the politicians talk of the next generation paying for some COVID relief for the people, but none of them discuss how all the massive debts that are never paid back are just under the surface, soon the sinkholes will appear.
It's quite simple why rates are climbing with rising imports and falling exports, the FED is obviously to be blamed for banking crisis. Something will eventually break if they keep the quantitative tightening and higher interest rates. Is this really a good time to have some savings in stocks?
first austerity, then brexit, now widespread bank failures. .always do your own research & speak to a license advisor before thinking about putting your money into these crazy markets
Agreed, my portfolio is well-matched for every market season yielding 85% from early last year to date. I and my CFP are working on a 7 figure ballpark goal, tho this could take another year. IMO, financial advisors are the most sought-after professionals after doctors.
Impressive gains! how can I get your advisor please, if you don’t mind me asking? I could really use a help as of now
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Sharon Lee Peoples” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
I had a CHASE Business account, and went with a local Community Bank as the VP for the Business Departments actually put in the work to help me get funding for capital growth.
However, shortly after I diversified my money and changed over my ACH's the VP called me to inform me the bank is merging with other banks. I asked the Banker "Why", and are my "deposits FDIC insured" as I transfers more money than what FDIC would cover.
Waiting for my puts to print
I got out of banking last year after 12 years. I feel like the writing’s on the wall and it’s just a matter of time before clerks and loan officers are replaced by ATMs and AI
I for one welcome our tech overlords, the more jobs we automate the less we have to work or can focus labor in different (hopefully better) areas.
Atm numbers are diminishing in my country, we have ai for a long time before chat gpt a lot of people use homebanking.
Let them come so people can discovery they are overhyped for certain applications
@@willw7743 Until you learn that many people can't do advanced jobs, and then you get a combination of criminals and violent people lashing out at a system that has no place for them. Good times are coming.
@@willw7743: Right now, the automation is there already ? And the people sleeps on the streets, with no food and no money and can't read the news. I used to think that, if you don't have an address, then you cannot get access to services. Now ? It's a case of... If you don't have a mobile phone. Then you are screwed. Royally. Even the offices of the councils doesn't exist at all... Or the offices of help doesn't work any more....
ATMs will probably start disappearing soon as cash is used less and less.
It just doesn’t stop.
No matter how we see this, it ends the same; failure.
Commercial failure or residential failure etc it just doesn’t stop with this capitalistic society failing in the end.
Borrowing money in the commercial sector is just as horrible as any other borrowing sector.
When we talk about our citizens needing better pay to have more capital to invest, the idea to solve a problem for those who own a large majority of assets and capital is absurd.
Our citizens as tax payers are just saving those who own the majority of stock shares and property but get left behind when we talk about taxing the rich, regulating healthcare costs, living costs and transportation.
How are we as a nation solving those who own banks and are those who are supposed to be capital gains experts?
Too big to fail, too big to exist really should ring loudly for our citizens.
This video is a great example how regular citizens are just on the back burner while billions upon billions are being traded or bought up.
We are watching as we have to sympathize with small banks to save our communities through capital finance through borrowing to strengthen said small community banks.
When these banks fail then where do the locals go to ask for loans when they are at an average to low income?
The big banks will turn them down or right up some policy that will make it impossible to ever own what those individuals are getting loans for ie homes, cars, even medical bills etc.
It’s tragic where we are going with this idea that borrowing is profitable just to watch as every American struggles to make rent or put food on the table with six figures.
It never fails to amaze me as I watch as our nation will devise plans to save a small bank but do nothing to save that family who desperately needed their employers to give them a living wage as this said company just goes into the private sector of the stock market and now have their hands in the pocket of said local community bank that is failing, hoping to buy them out.
The American dollar can be followed and there are only a certain amount of individuals who live and own those communities and those banks.
It doesn’t matter though some how sacrifices will be made to ensure our economy is safe and we can continue watching private corporate companies find the mysterious amount of capital to buy up all those loans in default to make record amount of capital the following year.
The dozens of times you keep saying "American citizens", "American people", "American struggles" is the reason why you get screwed.
Try being nice to the rest of the world, and refer to these problems with regards to the problems of "All Humans", as all humans matter, not just "Americans", cuz if your problems are solved by someone & americans are happy again, you'll go back to your happy life while letting your govt murder women & children across the globe. So, what's the use of helping just "Americans" instead of all humans?
Why does it seem like we go through this every 10 years or so. Did they not learn anything from 2006 and again in 2015?
"Too big to fail" or when every Bank is systemically important causes problems with massive Banks who have no idea to whom or even what they are lending to not small Banks that know their customers. The fact remains if Bank America fails (again) there simply is not enough money in the World to bail out that Bank. There are also unprotected financial institutions as well that are not Banks but can act as Banks to include insurance Companies, mutual funds, hedge funds, etc. These are overwhelmingly but not exclusively based upon Wall Street and not of course in energy rich states such as North Dakota.
All depositors are unsecured creditors period. Change the law if you want the people to trust the system.
Correct, David Webb makes that abundantly clear in his 'Great Taking' documentary.
Shut down the Fed and outlaw money printing and then maybe I’ll consider trusting it but not until then.
There's no risk. they know they'll be bailed out. just like in 2008 & 2023.
Big banks are almost guaranteed to be bailed out. Small banks are definitely not.
No..this time the government can't help..this is litteraly the end of the road for QE
No banks were bailed out in 2023
small banks may keep the loans in the book, that's one thing, can the borrowers repay that is the other.
Warren Buffett put an advertisement on the table during the anual Company meeting year ago that said :
Bank for sale .
People who think money is an illusion have never been homeless, starving, or in jail.
ask - why america funding other countries that fails banks in america?
because the banks might be failing but the corporations are having the time of their lives; banking busisness should have lobbyists as good as these corporations if they want the government to care more about them 😂 😂 that's what you get when your politics are defined by separate private interests instead of driven by the greater good for the whole.
US Bank also says they don't give bank statements and that it's all online but there is nothing online to pull up your bank statement. On Monday I'm going to call the fraud department.
All the local Banks in my area are gone, big ones moved in. Something happened
This is my fifth year after retirement. I’ve been following the 4% rule thing, but this isn’t really how hard I expected things to be. I still have about $146,000 outside funds in my IRA to invest. Pls how do I take advantage of this?
Now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
I think that is a brilliant idea, I tried managing my stock portfolio by myself and I lost 50% of my savings in a very short period. That prompted me to hire a financial advisor. Since then I have made up to $680K in returns.
Well, Market experts sure provides an edge in investing, Hello thanks for replying, I'm curious to give this a try. Please who is your advisor and how do I get in touch?
Well, Market experts sure provides an edge in investing, Hello thanks for replying, I'm curious to give this a try. Please who is your advisor and how do I get in touch?
Well, market gurus definitely provide an edge in investing. Hello, thanks for responding; I'm interested in giving this a shot. Who is your advisor, and how can I contact them?
Thank you for the content!! All we need is the right advice on how to invest in crypto and we will be set for life, I’ve made huge figures from trading regardless of the market conditions😊
If you don't want to crash and burn, you should seek the advice of a fiduciary counselor when you first start out. Because their entire skill set is based on going long and short at the same time, they employ a profit-driven strategy based on individual risk tolerance.
This sounds so good and I would like to be a party to this, is there any way I can speak with her?
Sure! She interacts on what 's Apk using the digit below 👇
🇺🇸+135
2519
This is why we need a reform on banks and capital reforms. The story behind the numbers ?
Great data,👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾🙏🙏🙏🌟⭐️💎
Great advertising for bitcoin 😅
Great video, I really appreciate the dedication in each video you post. Despite the dip in crypto, I still thank you for the level headed financial advice. I started crypto investment with $4,345 and since following you for few weeks now, i've gotten $18,539 in my portfolio. Thanks so much Maria Susan.
She is my family's personal broker and also a personal broker in many families in United States, she's a licensed broker and a FINRA AGENT in United states.
SHE IS IN TELGRAM.S..
@InvestwitSusan…that’s it.
Anyone who is not looking up to trading now is missing a great opportunity.
Yeah, because Money invested is far better than Money saved. When you invest your money it works for you and help you bring more money in the nearest future. I appreciate your advices, imagine l invested $1000 and received $9,200 from my investment.
This is why I use a credit union.
I think my bank is one of these small banks, it’s regional that’s for sure… I hope it makes it
Good.
not good
We should have just taken care of this in 2008. And when Covid was a pandemic.
*Plandemic*
Large banks trying to eat up small banks nothing new.
All you have to have is "faith" and "credit"...and TAXES
Dedollarization
Bidenomics
Hey Feds, here’s 3 step solution:
1) stop printing money
2) stop funding overseas wars
3) stop creating government jobs
1. The Treasury prints money
2. Congress and the President decide on overseas aid packages
3. Congress and the President are the ones who essentially create government jobs.
@@hellzshotgun yep the Feds (federal govt)
That won't fix the issues mentioned in the video. The banks will still have stressed loans.
@@razorswc noted. But it’s what got us here so let’s prevent from reoccurring.
Two out of three of those are really bad ideas
Banks do not represent any attraction to place my money in a bank. The few that pay High Interest Savings Accounts of 4.0% to 5.5% are worth considering but I can get the same benefit from my Credit Unions with more services & features at no cost.
"Dont worry because we've been through this before." That's what the bank says right before they go under.
They will get bailed out just like in 2008 😹😹
I wouldn't called it bailed... more like bonuses of 2008
@@virtuaguyverify I don’t remember asking for your opinion
@@googleaccount6931 I remember you commenting and me correcting though
Bidenomics, baby!
Unrelated