First Republic Bank fall: fear of more others to follow.

[Lida93]

On Tuesday the First Republic Bank  experienced a collapse in their shares due to depositors withdrawing more than $100bn and with the current condition many investors and analysts express fear of an impending collapse of the bank. Although as a recovery plan, the bank plans on selling off some of it's unprofitable assets and also laying off many of it's work force.

First Republic’s stock closed down nearly 50 percent on Tuesday, after the San Francisco-based lender disclosed that it lost 40 percent of its deposits in the first quarter as the banking sector suffered its biggest crisis of confidence since the 2007-2008 financial crash. https://www.google.com/amp/s/www.aljazeera.com/amp/economy/2023/4/26/first-republic-shares-hit-record-low-after-depositors-pull-100bn

.

With economic crisis facing the world, the banking sector isn't left out and since has been facing different financial crisis forcing some banks to merge in order to be able to continually stay in business, while some others hqs been forced to close down.

Ho vulnerable the banks are becoming in their shares due to the economic crisis plunging the world economy, and I fear the situation may grow worse and contiguous as today it's First Republic Bank, tomorrow which other will it be.

[davis196]

If the banks are capable to pay out all the deposits to the people, who want to withdraw them, there's nothing to worry about.
The real problem will appear, when the banks don't have any money to pay their depositors. It seems that First Republic Bank is handling the situation very well. It's normal for the banks to start facing difficulties. The interest rate hikes are intended to drive the financial sector into stagnation. This will lower the inflation and the economy will stop depending on the money printing machine(at least for a while).

[be.open]

If the banks are capable to pay out all the deposits to the people, who want to withdraw them, there's nothing to worry about.
The real problem will appear, when the banks don't have any money to pay their depositors. It seems that First Republic Bank is handling the situation very well. It's normal for the banks to start facing difficulties. The interest rate hikes are intended to drive the financial sector into stagnation. This will lower the inflation and the economy will stop depending on the money printing machine(at least for a while).

The key word here is "if". The very architecture of the modern banking system is such that not a single bank in the world can withstand the "raid of depositors." Typically, banks' reserve requirements for equity capital do not exceed 10-15% (and this is an optimistic estimate). No one knows how many paper unrealized losses that arose after a sharp rise in the key rate are in reality on the balance sheets.

[Solosanz]

I'm curious why the bank allow the depositors to withdraw $100 Billion of money? I think when the depositor want to withdraw a huge amount of money, the bank will make difficult for them to withdraw. The bank will investigating the money he have, only allow him to withdraw some portion of his total money, etc giving an excuse about any other bullshit reasons.

It doesn't feel right for the banks, maybe there's something behind that we're don't know...

[pooya87]

That's nothing compared to the whole situation that has been going on in the US banking sector for years. They've all been living on borrowed time, artificially. All they needed to crash and burn was a tiny nudge and last year's inflation + recession in United States ensured their demise.
If we thought 2008 mess was bad, the 2023-4 messes will be much worse specially since this time the world is slowly dumping the US dollar.

Remember buy bitcoin and HODL.

[Flexystar]

Wondering how banks are failing if they have the reserve banks' support? Maybe they will just file for bankruptcy if more than 10-20% of the assets are withdrawn from that particular bank. Considering the fact that they are giving away money off the other assets, for example, fixed deposit interests, loans that they might have lent, and mortgages that are just having shitty values and salaries. They will have no choice but to file for it.

The real question is why there was such sudden withdrawal from the depositors anyway?

First Republic said on Monday it was considering “strategic options” to strengthen the bank’s position.
The bank’s recovery plan includes selling off unprofitable assets and laying off up to a quarter of its workforce of about 7,200 employees.

That's a very large number for such a huge lender. Imagine the cost to the company for this management and how are they going to recover any of the deposits from the so-called unprofitable assets selling.

The only thing I did not like about Reuters is, they are calling it a chain reaction and fear amongst the investors followed by the failure of Silicone Valley Bank and Signature bank. Seriously they have to blame an institute or company which literally connects the dot with Crypto Space investment. 

I'm curious why the bank allow the depositors to withdraw $100 Billion of money? I think when the depositor want to withdraw a huge amount of money, the bank will make difficult for them to withdraw. The bank will investigating the money he have, only allow him to withdraw some portion of his total money, etc giving an excuse about any other bullshit reasons.

It doesn't feel right for the banks, maybe there's something behind that we're don't know...

That does not work like that mate.
It's your money when you deposit in the banks. There is no rule on how much you can withdraw OR how much you can spend from your bank account as long as everything is within the law.

We have seen denominations crisis in a few countries and governments have halted the money withdrawal. But have you seen the riots that followed after that? That's because its personal savings, and one has all the right to withdraw it.

In addition, that's collective amount that was withdrawn, it wasn't from an individual.

[Fivestar4everMVP]

The truth of the matter remains that the financial world is shifting, and it's time people start embracing bitcoin, all this things happening are just indications, it is high time people start learning to become their own bank.
There is always a good news in every bad news, and the good news here is that, stuffs like this are actually good for the adoption of bitcoin, the collapse of banks simply will drive some people into looking for an alternative, and bitcoin is here to be that alternative - adoption is coming to bitcoin, sooner than we think.

[Marvell1]

I'm curious why the bank allow the depositors to withdraw $100 Billion of money? I think when the depositor want to withdraw a huge amount of money, the bank will make difficult for them to withdraw. The bank will investigating the money he have, only allow him to withdraw some portion of his total money, etc giving an excuse about any other bullshit reasons.

It doesn't feel right for the banks, maybe there's something behind that we're don't know...

It's just your thought, it depends on each bank, each country, not the bank as well as you say. Not every bank makes it difficult or prevents people from withdrawing money, they have the right to get it all back as long as they follow the bank's regulations.

The Fed or the US government is more than capable of saving these banks, but there must be a reason why they shouldn't. Many people look at it and think the banking and fiat systems are collapsing, which is a rather short-sighted view. For me, it's just a purge and reset game because we have millions of banks in the world.

[stompix]

I'm curious why the bank allow the depositors to withdraw $100 Billion of money? I think when the depositor want to withdraw a huge amount of money, the bank will make difficult for them to withdraw. The bank will investigating the money he have, only allow him to withdraw some portion of his total money, etc giving an excuse about any other bullshit reasons.

It doesn't feel right for the banks, maybe there's something behind that we're don't know...

Why it doesn't feel right?
That's how things are supposed to be, people deposit money when they want, and people should withdraw money when they want.

What's really surprising in this whole situation is that the whole panic started after someone managed to get 72 billion out of the bank without a hiccup, proving the bank had that 72 billion and not by somebody not being able to get his money out. Furthermore, the other action that triggered more panic and the price dwindling on the stock market is that they plan on liquidating close to 100 billion in assets to prepare for more withdraw and balance sheets, thus proving they still have at least another 100 billion ready. This is a bit of fucked up situation where a bank that has the money is going down while others who are probably in worse situations are watching calmly from the sure simply because their users are not that keen to cash out.

Anyhow, I don't know why everyone is panicking now, the major storm was back in March when they went down from 120$ to 12$ per share.

[Gyfts]

Wondering how banks are failing if they have the reserve banks' support? Maybe they will just file for bankruptcy if more than 10-20% of the assets are withdrawn from that particular bank. Considering the fact that they are giving away money off the other assets, for example, fixed deposit interests, loans that they might have lent, and mortgages that are just having shitty values and salaries. They will have no choice but to file for it.

The real question is why there was such sudden withdrawal from the depositors anyway?

Q1 financial report was released and it showed their earnings are poor, so naturally depositors would want their money away from the institution that isn't involved in healthy investments. First Republican doesn't have banking by the federal government, they've explicitly said they won't be providing them with aid.

Naturally, the bigger banks would come in and provide some liquidity because they're already in 30B due to previous investments when SVB fell. And if not, First Republic gets seized and sent over to FDIC to redistribute funds to depositors.

[avikz]

I simply want to ask a question - what is the US government doing? Don't they have the slightest responsibility to save the depositor's money? They are sitting on trillions of dollars. What about quantitative easing? Are they doing anything at all?

The banking crisis is real and the banking system is the backbone of the economy. So in such cases, the government needs to step in and provide provisions to help the bank survive. In my country, when two banks showed signs of collapse, the government immediately stepped in and provided them provisions to survive and now they are back on track. I gambled a little with their shares and now I am standing at around 270% profit on my investment.

During weak economic scenario, banks fail. But what's the use of paying IRS if the government doesn't come to rescue? For what people are paying taxes?

[southerngentuk]

While it is true that banks being able to pay out all deposits is important for the stability of the financial system, it is not necessarily a guarantee of the absence of problems. Banks can face difficulties due to a variety of factors such as loan defaults, market volatility, and changes in regulatory requirements.

Regarding interest rate hikes, while they can have an impact on inflation and the economy, their effects can be complex and unpredictable. It is also worth noting that the decision to raise interest rates is typically made by central banks, not individual banks. The goal of central banks in raising interest rates is typically to manage inflation and ensure economic stability, rather than to drive the financial sector into stagnation.

[cabron]

I simply want to ask a question - what is the US government doing? Don't they have the slightest responsibility to save the depositor's money? They are sitting on trillions of dollars. What about quantitative easing? Are they doing anything at all?

The banking crisis is real and the banking system is the backbone of the economy. So in such cases, the government needs to step in and provide provisions to help the bank survive. In my country, when two banks showed signs of collapse, the government immediately stepped in and provided them provisions to survive and now they are back on track. I gambled a little with their shares and now I am standing at around 270% profit on my investment.

During weak economic scenario, banks fail. But what's the use of paying IRS if the government doesn't come to rescue? For what people are paying taxes?

They still guarantee the $250K. That's what the influencers are saying upon defending the failed banks. Kind of funny sometimes even the smartest people we know in the past like Kevin Oleary who was recently interviewed in Kitco.

QE will only make the worse for inflation. For a bank and even the government, it's really a hard situation to get out of this crisis. So FED prefers to kill the demand and yet the government never stops spending Billions outside the country.

[iv4n]

If the banks are capable to pay out all the deposits to the people, who want to withdraw them, there's nothing to worry about.
The real problem will appear, when the banks don't have any money to pay their depositors. It seems that First Republic Bank is handling the situation very well. It's normal for the banks to start facing difficulties. The interest rate hikes are intended to drive the financial sector into stagnation. This will lower the inflation and the economy will stop depending on the money printing machine(at least for a while).

The key word here is "if". The very architecture of the modern banking system is such that not a single bank in the world can withstand the "raid of depositors." Typically, banks' reserve requirements for equity capital do not exceed 10-15% (and this is an optimistic estimate). No one knows how many paper unrealized losses that arose after a sharp rise in the key rate are in reality on the balance sheets.

The architecture of the modern system. The entire system is fucked up:

Kwon, suspected of being the one behind the losses of over 40 billion dollars, was arrested at the airport in Montenegro’s capital of Podgorica on March 23.

His company in Serbia was registered with the main activity of “consultancy services,” and was established with 100 Serbian dinars in capital, which is less than a euro.

- Source: Arrested “crypto king” sets up company in Serbia while evading Interpol

I saw and heard about many systematic scams in which many institutions were involved. But did we ever have some real closure? I don't think so...
And banks are at the top of the pyramid, everything goes through them in the end. And whatever shit they make the governments will bail them out and the board of directors will receive their bonuses at the end of the year.

[South Park]

I'm curious why the bank allow the depositors to withdraw $100 Billion of money? I think when the depositor want to withdraw a huge amount of money, the bank will make difficult for them to withdraw. The bank will investigating the money he have, only allow him to withdraw some portion of his total money, etc giving an excuse about any other bullshit reasons.

It doesn't feel right for the banks, maybe there's something behind that we're don't know...

The most likely explanation is that those that withdrew that amount of money were the kind of people you cannot say no to, so we are talking about powerful politicians or incredibly rich people, as anyone which has tried to withdraw a decent amount of money out of their bank account knows that you cannot do so without being interrogated by the bank staff, and even then they can refuse to do so by using any excuse they may like at the time.

[darkangel11]

I'm curious why the bank allow the depositors to withdraw $100 Billion of money? I think when the depositor want to withdraw a huge amount of money, the bank will make difficult for them to withdraw. The bank will investigating the money he have, only allow him to withdraw some portion of his total money, etc giving an excuse about any other bullshit reasons.

It doesn't feel right for the banks, maybe there's something behind that we're don't know...

That shouldn't be the case. It's their money, not the bank's, isn't it?
I find it funny that people are so used to being fucked by these institutions, that they see a normal action of allowing clients to withdraw as something abnormal.
What was happening in China where the banks were being protected by the military so that people would not be able to withdraw is the pathological state that some of us have to live in.

[el kaka22]

It makes no sense to withdraw at this moment, but if people are so worried then banks should be able to. Which money did people withdrew? Their own money, so you are telling me that if people want their own money back, the bank would collapse? Don't they suppose to have everyoens money and then some profits on top of that? I give it 100 bucks, it loans it to someone else  for 110, and they make 10 profit, so they should be making a profit let alone be in debt.

So if they can't give everyone's money back, then they should maybe be taken over by government and pay people their money back and then close shop, they can sell the buildings and every other asset in there to pay it if they have to. I do not think that banks who fail to pay people their money back should be allowed to operate.

[disconnectme]

I am not surprised by the recent cracks and failures in the banking system, the system was propped up with free money and almost everyone feels like a genius but now that the free money has dried up, the men are being separated from the boys, this is not an issue associated with the banking sector alone but the whole economy, there are a lot of zombie companies now that will default and fail in coming months just be prepared, until the Central banks turn on the tap this trend is likely going to continue

[ololajulo]

I am not surprised by the recent cracks and failures in the banking system, the system was propped up with free money and almost everyone feels like a genius but now that the free money has dried up, the men are being separated from the boys, this is not an issue associated with the banking sector alone but the whole economy, there are a lot of zombie companies now that will default and fail in coming months just be prepared, until the Central banks turn on the tap this trend is likely going to continue

I admire your ability to provide a clear perspective on the matter. The recession's impact on the American economy and financial state is undeniable, and it can no longer be ignored. However, I hold the belief that the market will improve in the near future.

[suzanne5223]

If the banks are capable to pay out all the deposits to the people, who want to withdraw them, there's nothing to worry about.
The real problem will appear, when the banks don't have any money to pay their depositors. It seems that First Republic Bank is handling the situation very well. It's normal for the banks to start facing difficulties. The interest rate hikes are intended to drive the financial sector into stagnation. This will lower the inflation and the economy will stop depending on the money printing machine(at least for a while).

Yes, there shouldn't be any reason for alarm if the banks still operating and paying the depositor and account holders their funds but it would be a call for alarm if you're one of the bank shares holders.
Although, the First Republic Bank seems to have everything under control since their shares rebounded today but I believe the issue happening lately with banks should make people know that they need to diversify in cryptocurrency.

[lionheart78]

Any bank will surely go bankrupt if its depositors pull out their money.  Remember bank don't have that huge capital.  They mostly rely on the profit from the investment using the money deposited by its client to maintain their operation. The survivability of a bank relies on the trust of its depositors so if the depositors lost trust in the banking system, it is obvious what will happen next.  With the current economic crisis where lots of company is unable to pay their loans it is not a surprise that banks get bankrupt and in the presence of more profitable venturer, depositors are pulling out their funds to invest personally in another venture.

[Baofeng]

If the banks are capable to pay out all the deposits to the people, who want to withdraw them, there's nothing to worry about.
The real problem will appear, when the banks don't have any money to pay their depositors. It seems that First Republic Bank is handling the situation very well. It's normal for the banks to start facing difficulties. The interest rate hikes are intended to drive the financial sector into stagnation. This will lower the inflation and the economy will stop depending on the money printing machine(at least for a while).

The key word here is "if". The very architecture of the modern banking system is such that not a single bank in the world can withstand the "raid of depositors." Typically, banks' reserve requirements for equity capital do not exceed 10-15% (and this is an optimistic estimate). No one knows how many paper unrealized losses that arose after a sharp rise in the key rate are in reality on the balance sheets.

Right, and the first one that are withdrawing are just average and ordinary Joe, I don't think that individuals that have millions on the banks are the one starting this bank runs. And when banks are overwhelm with this massive withdrawals, they will have to act fast, maybe selling their bonds immediately to cover it in time.

And I have also the same reasons that the Fed interest rate hikes could have affected or one of the factors. Perhaps depositors doesn't want their money sitting on banks because it will not earn them any. So we might as well withdraw it and put it to other assets like crypto.

[Darker45]

With the number of banks, large ones at that, falling one after another in just a matter of months, this is really indicative of a much bigger problem. The sad thing is that all of this might just be the opening salvo. Surely, the ripple effect of what's been happening might even be worse. If the depositors lose trust and confidence of the banks, more billions will flow out. That will cause more damage.

People should now begin to seriously look for a better alternative. Bitcoin offers that.

[Ludmilla_rose1995]

and they say that Bitcoin is more volatile than their banking system? whereas their banking system is much more unstable and very fragile, it could collapse anytime. Just because it was supported by the government and more people adopted it has stayed afloat until now, if it was standalone like Bitcoin I don't think it would have survived.

Bitcoin > Traditional banking system.

[adaseb]

The issue here is that why would anyone keep their money in this bank when they know it has liquidity issues and might go under. Most likely it will get seized by the fdic over the weekend.

Will the fed again back all the deposits over $250K. Most likely since it would cause more panic on other banks but it would also lead to inflation. So the fed is at a tough position now.

[be.open]

I simply want to ask a question - what is the US government doing? Don't they have the slightest responsibility to save the depositor's money? They are sitting on trillions of dollars. What about quantitative easing? Are they doing anything at all?

The banking crisis is real and the banking system is the backbone of the economy. So in such cases, the government needs to step in and provide provisions to help the bank survive. In my country, when two banks showed signs of collapse, the government immediately stepped in and provided them provisions to survive and now they are back on track. I gambled a little with their shares and now I am standing at around 270% profit on my investment.

During weak economic scenario, banks fail. But what's the use of paying IRS if the government doesn't come to rescue? For what people are paying taxes?

Deposits up to $250,000 are insured, and as for everything else - Biden spoke during the collapse of the previous bank a month ago in the style that when you make a profit, it's your profit, and when you make a loss, it's also your loss, because that's how capitalism works.

Do not confuse: the vicious practice of taking profits for yourself, and writing off losses to the state is the privilege of backward corrupt totalitarian regimes like Russia. *sarcasm

[Merit.s]

I'm curious why the bank allow the depositors to withdraw $100 Billion of money? I think when the depositor want to withdraw a huge amount of money, the bank will make difficult for them to withdraw. The bank will investigating the money he have, only allow him to withdraw some portion of his total money, etc giving an excuse about any other bullshit reasons.

It doesn't feel right for the banks, maybe there's something behind that we're don't know...

If the withdrawal of customers funds will lead to the crash of a bank,I don't think that I have problem with that. It is these customers funds that the bank is using to loan out to investors in return of interest for them as profit,without the knowledge of the customers whose funds that the bank used. At the end of the day, the bank will still charge the customer's whose funds that they used for business to pay some fee for maintenance of card,fee for making transactions and the rest. So it is good for the banks to know that without these customers that they are shit. Fiat is vulnerable to inflation and investors have started to understand this,with the recent drop in USD and crash of banks that bitcoin is the only digital gold which has led to those withdrawal to invest in bitcoin.

[be.open]

If the banks are capable to pay out all the deposits to the people, who want to withdraw them, there's nothing to worry about.
The real problem will appear, when the banks don't have any money to pay their depositors. It seems that First Republic Bank is handling the situation very well. It's normal for the banks to start facing difficulties. The interest rate hikes are intended to drive the financial sector into stagnation. This will lower the inflation and the economy will stop depending on the money printing machine(at least for a while).

Yes, there shouldn't be any reason for alarm if the banks still operating and paying the depositor and account holders their funds but it would be a call for alarm if you're one of the bank shares holders.
Although, the First Republic Bank seems to have everything under control since their shares rebounded today but I believe the issue happening lately with banks should make people know that they need to diversify in cryptocurrency.

I am pleased with your optimism, today the shares of the bank, after a slight rebound, fell by another 43%. I think no one is going to save him, and it is hardly possible at all.

[suzanne5223]

If the banks are capable to pay out all the deposits to the people, who want to withdraw them, there's nothing to worry about.
The real problem will appear, when the banks don't have any money to pay their depositors. It seems that First Republic Bank is handling the situation very well. It's normal for the banks to start facing difficulties. The interest rate hikes are intended to drive the financial sector into stagnation. This will lower the inflation and the economy will stop depending on the money printing machine(at least for a while).

Yes, there shouldn't be any reason for alarm if the banks still operating and paying the depositor and account holders their funds but it would be a call for alarm if you're one of the bank shares holders.
Although, the First Republic Bank seems to have everything under control since their shares rebounded today but I believe the issue happening lately with banks should make people know that they need to diversify in cryptocurrency.

I am pleased with your optimism, today the shares of the bank, after a slight rebound, fell by another 43%. I think no one is going to save him, and it is hardly possible at all.

Thanks for the update but I am not optimistic about banks or centralized platforms just providing an update about the situation and I believe the reason for the major 43% dump trend on the First Republic Bank shares was due to panic selling of which I expect it to happen and that's why I advise people to start to diversify into cryptocurrency because the centralized platform is easily manipulated.
Nevertheless, this is a win for Bitcoin and all crypto at large.

[Bushdark]

I am still surprised the way banks are falling and crashing due to lack of funds which could have been mismanagement of funds or fake news that might have affected the bank I. Particular. This might continue but I hope it wouldn't spread too fast to the extent of crushing several banks. Inflation is affecting many if these banks including the customers too and many investors are still in panicking because things can go wrong anytime.

For we not to be a victim as an individual customers of many of these banks, we need to make sure that we don't put all our money in bank, we can invest in cryptocurrency to be on a safer side.

[adaseb]

The reports came out that it’s under fdic receivership so it’s pretty much closed. The issue with this is that many depositors from small banks will get scared and they will also withdraw their funds, especially if they have more than 250K.

And the credit crunch will be bad on the economy. These banks won’t be able to provide credit to local businesses anymore and there will be an accelerated recession. We already have this happening in the auto markets where interest rates are over 10% for cars.

[be.open]

So who's next? There seems to be a new leader in the bankruptcy battle, and that is PacWest Bancorp, whose shares were suspended today after falling 34.5%. However, shares of many other regional US banks also show a double-digit drop.

This is not surprising, because after the sale of the remains of the First Republic Bank, the depositors kept their deposits, and the shareholders received nothing. The capitalization of 100 billion was - and it is not.

[siniminomorocomunisakito]

On Tuesday the First Republic Bank  experienced a collapse in their shares due to depositors withdrawing more than $100bn and with the current condition many investors and analysts express fear of an impending collapse of the bank. Although as a recovery plan, the bank plans on selling off some of it's unprofitable assets and also laying off many of it's work force.

Yes, it makes sense to look at the effects. A collapse in First Republic Bank stock and withdrawals of large sums of money by depositors could be an indication of a lack of confidence in the bank and its financial stability and the bank's decision to sell off unprofitable assets and lay off employees could be seen as an attempt to address financial challenges and reassure investors and customers.

The banking industry is also subject to various external factors and uncertainties that can affect its performance, making it difficult to say whether other banks will follow suit. I think it will depend on various factors such as the state of the economy, banking regulations and overall market conditions.

[slapper]

First Republic Bank's struggles? No shocker, with this economy. But banks? Always fragile in crises. Why support a flawed, ancient system?

Time for a game-changer! Ditch huge banks, try community banks or credit unions. More in tune with local folks, less risky moves.

Easier said than done, I know. Banks? Entrenched in our world. Massive effort needed for real change. But the status quo? Unsustainable. Let's think wild, find a fairer, steadier financial future.

[Dunamisx]

With economic crisis facing the world, the banking sector isn't left out and since has been facing different financial crisis forcing some banks to merge in order to be able to continually stay in business, while some others has been forced to close down.

The truth is that more are to follow the likes of this kind of fall, we should know this in dealing with any centralized exchanges or institutions, they are unreliable and we cannot predict their outcome at any point in time, this is part of the reason everyone is getting decentralized because they needed a change to their financial situation, they go against modern financial slavery with using banks aside the risk associated in using them, they get attacked easily and there's no maximum security and privacy in using the unlike bitcoin.

[boyptc]

So who's next? There seems to be a new leader in the bankruptcy battle, and that is PacWest Bancorp, whose shares were suspended today after falling 34.5%. However, shares of many other regional US banks also show a double-digit drop.

This is not surprising, because after the sale of the remains of the First Republic Bank, the depositors kept their deposits, and the shareholders received nothing. The capitalization of 100 billion was - and it is not.

And there's even a statement came from Yellen, she said that by June, the US might ran out of cash.

--> https://www.bbc.com/news/world-us-canada-65452444

Are all of these incidents being tailored and it's actually a scary statement coming from the treasury secretary. It's only a matter of time until we see another huge bank bails out and announces its bankruptcy.

[Andrija Branislav]

This is a bit of fucked up situation where a bank that has the money is going down while others who are probably in worse situations are watching calmly from the sure simply because their users are not that keen to cash out.

I think this is normal, sir, for a bank with a big reason. Firstly, the fact that banks are able to handle large withdrawals without any issues indicates that they have solid reserves of funds to draw on. This is a positive sign that shows the bank has good capital and is able to meet the needs of its customers.

Second, the decision to liquidate assets to prepare for further withdrawals may be a wise move to ensure the bank can continue to operate smoothly. By selling assets to raise cash, banks can maintain sufficient liquidity to meet their obligations without running into financial difficulties.

About The fall in share prices if I'm not mistaken may be a reflection of broader market trends or investor sentiment, not an indication of any underlying problems with the bank itself.

[South Park]

First Republic Bank's struggles? No shocker, with this economy. But banks? Always fragile in crises. Why support a flawed, ancient system?

Time for a game-changer! Ditch huge banks, try community banks or credit unions. More in tune with local folks, less risky moves.

Easier said than done, I know. Banks? Entrenched in our world. Massive effort needed for real change. But the status quo? Unsustainable. Let's think wild, find a fairer, steadier financial future.

A new system can only be born from the ashes of the previous one, banks and the people behind them are never going to give up their privileges no matter what happens, and they are willing to bring the whole economy down if need be, the only thing we can hope for is that once there is a reboot those at the top realize what happened and they decide to make a change, but if I am perfectly honest with you I am not confident that this will happen and most likely nothing will change even under those very difficult circumstances.

[Mate2237]

Bank does not just collapse like that. If the company can't meet up the demand what they normally do is to see a share of the company out and that there is about 6℅ of the company so many workers are always affected by this decision. And the term associated to this partnership is Public Private Partnershp if the company or the bank is own by the government, it beco.es PPP.
The whole world economy is in a dilemma situation. Economic crisis is everywhere. But from my observation the bank is still utilized in the country.

[darkangel11]

A new system can only be born from the ashes of the previous one, banks and the people behind them are never going to give up their privileges no matter what happens, and they are willing to bring the whole economy down if need be, the only thing we can hope for is that once there is a reboot those at the top realize what happened and they decide to make a change, but if I am perfectly honest with you I am not confident that this will happen and most likely nothing will change even under those very difficult circumstances.

Which is why bigger banks are buying out the smaller ones because they know if a smaller bank goes bankrupt people will lose trust in the system. They will also not move to one bank but get lost in the process. Some will go here, others there, some will keep their money under the mattress, some will buy bitcoin, and some will commit suicide after losing their savings.
It's better for a big bank to take them all under its wing, but how long can they keep doing it? At some point a bigger bank will go bust and there won't be anyone big enough to buy it out, so the government will print money to help them, taxing the whole society (because inflation is the tax we all pay) and making the people pay for bank's mistakes.
If you think it won't happen, just check how much the US printed while the FED was hiking rates. The rates going up don't mean the printer isn't working.

[be.open]

A new system can only be born from the ashes of the previous one, banks and the people behind them are never going to give up their privileges no matter what happens, and they are willing to bring the whole economy down if need be, the only thing we can hope for is that once there is a reboot those at the top realize what happened and they decide to make a change, but if I am perfectly honest with you I am not confident that this will happen and most likely nothing will change even under those very difficult circumstances.

Which is why bigger banks are buying out the smaller ones because they know if a smaller bank goes bankrupt people will lose trust in the system. They will also not move to one bank but get lost in the process. Some will go here, others there, some will keep their money under the mattress, some will buy bitcoin, and some will commit suicide after losing their savings.
It's better for a big bank to take them all under its wing, but how long can they keep doing it? At some point a bigger bank will go bust and there won't be anyone big enough to buy it out, so the government will print money to help them, taxing the whole society (because inflation is the tax we all pay) and making the people pay for bank's mistakes.
If you think it won't happen, just check how much the US printed while the FED was hiking rates. The rates going up don't mean the printer isn't working.

Now there are some ideological difficulties with the money printer, because Congress cannot agree on another increase in the national debt limit. It seems the most realistic solution to this problem today is to take advantage of a loophole in the current legislation, according to which the US Treasury can mint platinum coins of any denomination and mint a one trillion dollar platinum coin.

At this point, if any of the other solutions, the so-called more serious solutions would work, then they would've been used by now. But they keep not actually being strong enough. The coin's the only one that's strong enough.

LOL 

[Lida93]

With the number of banks, large ones at that, falling one after another in just a matter of months, this is really indicative of a much bigger problem. The sad thing is that all of this might just be the opening salvo. Surely, the ripple effect of what's been happening might even be worse. If the depositors lose trust and confidence of the banks, more billions will flow out. That will cause more damage.

People should now begin to seriously look for a better alternative. Bitcoin offers that.

There could be much of a discreet informations that these banks must be hiding about why the depositors had to at once withdraw their deposits from the bank leading to it's collapse. All of these institutions prefer taking their secret that led to their weakness to the grave than having it to the public desk. And in every matter of money when trust is no more ensured there's bond to be disagreements.

Starching more in a bank without getting enough return in profit from your money year in year out is one dump decision in this 21C, and my guts tells me some of those depositors might wanna try investing in cryptocurrency as an alternate discovery.

[darkangel11]

There could be much of a discreet informations that these banks must be hiding about why the depositors had to at once withdraw their deposits from the bank leading to it's collapse. All of these institutions prefer taking their secret that led to their weakness to the grave than having it to the public desk. And in every matter of money when trust is no more ensured there's bond to be disagreements.

Starching more in a bank without getting enough return in profit from your money year in year out is one dump decision in this 21C, and my guts tells me some of those depositors might wanna try investing in cryptocurrency as an alternate discovery.

Which is why they're attacking cryptocurrencies so much this year. It's not a coincidence that they were more or less fine with cryptocurrencies as long as banks were doing fine and inflation wasn't going crazy, but since 2022 it's an all out war. Suddenly they sue people for promoting cryptocurrencies, advise the banks to stop dealing with exchanges and crypto companies, demand licenses, attack centralized cryptocurrencies like XRP, because these are easy targets, attack miners, because they are also easy targets as they have registered businesses, unlike holders and traders... We hear about all this energy FUD, bank failures are blamed on crypto, it's like a textbook example of looking for a scapegoat.

The goal of all of this is to blame something else for their own mistakes and scare people away from crypto investments that offer an easy escape from the current system. They know well that people moving their money out of the banks and into crypto would not only collapse the banking sector but also weaken the dollar.