Bank Failures

@Onestarlitnight What Is the Largest Bank Failure?

So, why are people panicking over two bank failures when it’s typical to see dozens in a year?

One reason is the Silicon Valley Bank collapse was the second-largest bank failure in U.S. history—the first being the 2008 collapse of Washington Mutual. SVB was one of the most well-known lenders for tech companies and startups and the 16th largest bank in the country.

Just two days later, regulators shut down Signature Bank, resulting in the third-largest bank failure in U.S. history.

If you look at the FDIC’s list of failed banks, you’d be forgiven for not recognizing any names from the last decade. While bank failures are common, ******it’s usually small, regional banks that shut down.******

The last bank to fail before SVB was Kansas-based Almena State Bank in 2020, a state-chartered bank with just $69 million in assets. The other three banks that failed in 2020—First City Bank of Florida, the First State Bank and Ericson State Bank—held $136, $156 and $101 million in assets, respectively, near the time of failure

Year Bank Failures
2000 2
2001 4
2002 11
2003 3
2004 4
2005 0
2006 0
2007 3
2008 25
2009 140
2010 157
2011 92
2012 51
2013 24
2014 18
2015 8
2016 5
2017 8
2018 0
2019 4
2020 4
2021 0
2022 0
2023 2

@NoGamesTolerated
The panic currently stems from the reason these banks failed which was heavy bond losses caused by the federal reserve’s interest rate policy.
Lots of banks are carrying hundreds of billions of dollars in treasury bonds and are sitting on losses totaling tens of billions of dollars.
Over the last decade and particularly over the last few years the federal reserve has sold literally trillions of dollars worth of bonds into the market. Mostly at the short end of the yield curve and that’s a problem because those losses are going to be realized very soon.

@Onestarlitnight You may be at ease over this but I assure you there are 10’s of thousands the world over that are concerned and very concerned.

BTW, that was not my opinion. It was obtained online. So…f you read it , it answers the question and it’s not what you are saying.

@Onestarlitnight Silicon Valley Bank held $209 billion in assets as of December 2022, making it roughly 2,000 times the size of the most recent banks to fail. Signature Bank held $110 billion in assets at the end of last year. By comparison, Washington Mutual held $307 billion in assets when it failed in 2008.

Until the SVB collapse, it had been over a decade since the failure of a bank with more than $7 billion in assets. Even in 2010, when 157 banks failed, the combined assets held by those banks totaled less than half of the assets held by Silicon Valley Bank alone. So while bank failures are a common occurrence, it’s exceedingly rare to see a bank the size of SVB or Signature Bank collapse.

@Onestarlitnight ... but, is it the USUAL reasons for banks to collapse, next, the 'Puppet Masters' will be saying "to stop this happening, we need to inplement Digital Currency" - so saying it out loud, it's 'THEM' that are causing the Banks to fail