A Wall Street sign outside the New York Stock Exchange. Photo: Reuters.
PacWest Bancorp, a private bank based in San Francisco, California, is considering a sale of its assets after suffering significant losses. Last week, First Republic Bank became the third US bank to collapse since March, the second-largest bank failure in US history after Washington Mutual, which collapsed in 2008 amid the financial crisis.
Following the collapse of Silicon Valley Bank and Signature Bank in March, a study on the fragility of the US banking system found that 186 more banks with assets of about $300 billion are at risk of failure even if only half of their uninsured depositors decide to withdraw their funds. If a bank fails, uninsured depositors stand to lose a portion of their deposits.
US Federal Reserve Makes Unprecedented Move to ‘Save’ Banks (+Bailout)
Uninsured deposits are owned by customers who exceed the deposit insurance limit of $250,000 of the Federal Deposit Insurance Corporation (FDIC).
Several banks are failing in the United States because aggressive interest rate increases by the Federal Reserve to supposedly contain inflation have eroded the value of bank assets, such as Treasury bonds and mortgage-backed securities, as well as other financial instruments.
Translation: Orinoco Tribune
OT/SC/AF/LA
Misión Verdad
Misión Verdad is a Venezuelan investigative journalism website with a socialist perspective in defense of the Bolivarian Revolution
