Early 2023 was an incredibly difficult time for regional banks in the US — particularly crypto banks. Silicon Valley, First Republic, Signature, Silvergate, and Pacific Western Bank all either collapsed, closed down, or had their assets and liabilities purchased.

As the year continued, no further bank runs or collapses occurred; it appeared as though the worst of the regional banking crisis had passed.

Unfortunately, more regional banks are teetering again, including a couple that rushed in to purchase assets and liabilities from Signature Bank and Silicon Valley Bank — which serviced crypto and tech companies.

Yesterday, New York Community Bank’s shares fell sharply by almost 40%. The decline came after the bank announced that it was cutting dividends and charging off multiple real estate loans, according to American Banker. The bank, which purchased assets from Signature Bank in 2023, became a Category IV bank last year after crossing $100 billion in total consolidated assets.

The show goes on: How Signature Bank’s bailout saved Broadway

Read more: The red flags of Axos, which banked CZ, Scott Purcell, and Alex Jones

Simultaneously, several mid-sized banks throughout the country are struggling to reconcile investor woes concerning their commercial real estate holdings — though exposure seems minimal compared to the dramatic events that punctuated February through May of 2023.

Lastly, First Citizens Bank, which acquired assets and depositors from Silicon Valley Bank last year, suggested that 2024 may be slow considering a decline in private equity, venture capital, and an overall downturn in the tech sector.

Banks regional or otherwise certainly aren’t facing the crises that they were last year, but it’s evident that the sector, along with real estate, is still dealing with the lingering effects of a tumultuous economic outlook over the past few years.

Read the full article here

Share.

Leave A Reply

Your road to financial

freedom starts here

With our platform as your starting point, you can confidently navigate the path to financial independence and embrace a brighter future.

Registered address:

First Floor, SVG Teachers Credit Union Uptown Building, Kingstown, St. Vincent and the Grenadines

CFDs are complex instruments and have a high risk of loss due to leverage and are not recommended for the general public. Before trading, consider your level of experience, relevant knowledge, and investment objectives and seek financial advice. Vittaverse does not accept clients from OFAC sanctioned jurisdictions. Also, read our legal documents and make sure you fully understand the risks involved before making any trading decision