The banks that collapsed recently faced diverse challenges that affected their operations. For instance, Silvergate faced multiple regulatory actions due to its dealings with the bankrupt FTX exchange, its founder Sam Bankman-Fried and its sister company Alameda Research. It also cited the 2022 bearish market as part of the challenges that made it insolvent.
On the other hand, Silicon Valley Bank failed due to many losses in its operations and other factors. Signature Bank also faced challenges it couldn’t handle, leading to state intervention.
Apart from these three banks, economists have discovered more than 186 banks in the United States are already positioned to crash.
Economists Discover More Banks Set To Collapse
A recent report revealed that up to 190 banks in the US are already on the brink of a crash. Analyzing the failed Silicon Valley Bank, the analysts discovered that 10% of US banks currently have more unrecognized losses than the SVB. They also discovered that SVB capitalization is higher than 10% of existing banks.
However, SVB kept more share of uninsured funding since only 1% of…
