Unraveling the regional banking crisis amid skyrocketing interest rates
US Global Investors/Frank Holmes/5-5-2023
“The consequence is that the regional banking crisis is already worse than the global financial crisis—by one metric, anyway. More than half a trillion dollars in assets have been wiped out this year from the failures of Silicon Valley Bank (SVB), Signature Bank and First Republic Bank.”
USAGOLD note: Though concerns about the banking system have calmed for the moment, they haven’t gone away. A number of money managers, including Doubleline’s Jeffrey Gundlach, believe we are in only the early stages of the crisis. First Republic Bank, he says, was not the “last chapter in this regional banking problem.” That said, the damage already done has been significant, as shown in the chart below.
Total assets lost in bank failures
(2001 to present)
Chart courtesy of the Federal Deposit Insurance Corporation (FDIC) • • • Click to enlarge.
