Biden oversaw 3 of 4 worst US bank failures.

Conservative News DailyMay 6, 2023

a concerning trend. The precedent set by the government’s willingness to bail out failing banks with taxpayer money is making private banks less willing to acquire or bail out these institutions.”

The recent failures of First Republic Bank, Silicon Valley Bank, and Signature Bank have raised alarm bells among experts who warn that the Federal Reserve’s interest rate regime could lead to additional problems across the sector. These failures have cost taxpayers an estimated $36 billion, according to the Federal Deposit Insurance Corporation (FDIC).

“The Federal Reserve, the Treasury, this entire administration, frankly, has been very inconsistent with their operations in financial markets,” says E.J. Antoni, an economist and research fellow at The Heritage Foundation. “So they will do one thing in one instance and then something completely different in the next.”

The recent sale of First Republic Bank to JP Morgan Chase for $10.6 billion has further highlighted the issue. While the move will provide a backstop in the event of major bank failures, it will cost the FDIC Deposit Insurance Fund about $13 billion. The March failure of Silicon Valley Bank cost the fund $20 billion, and the collapse of Signature Bank shortly thereafter cost the fund about $3 billion.

Experts largely blame the bank failures on interest rate hikes that the Federal Reserve has pursued over the last year. “A lot of these banks hold government bonds that are now worth — they’ve dropped in value by about 30% because of the huge interest rate spike over the last year. So, their balance sheets look horrible now because of some of the Fed actions,” says Stephen Moore, a senior economist at FreedomWorks.

The Federal Reserve and White House have attempted to assuage fears, with President Biden remarking in March that “Americans can rest assured that our banking system is safe.” However, experts warn that the government’s willingness to bail out failing banks with taxpayer money is setting a concerning precedent.

First Republic Bank Shares Plummet Amid Uncertainty About Rescue Deal

Recent events have caused concern about the stability of the banking system, particularly in light of the failed rescue deal between First Republic Bank and JPMorgan Chase. According to experts, this could have a ripple effect on other regional banks, including First Horizon Bank, PacWest Bancorp, and Western Alliance.

Interest Rate Hikes to Blame?

Many experts, including Stephen Moore, a senior economist at FreedomWorks, believe that the bank failures are due to interest rate hikes pursued by the Federal Reserve over the last year. “A lot of these banks hold government bonds that are now worth — they’ve dropped in value by about 30% because of the huge interest rate spike over the last year. So, their balance sheets look horrible now because of some of the Fed actions,” Moore told Fox News Digital.

The Federal Reserve has been criticized for maintaining extremely low pandemic-era interest rates for too long, which has forced financial institutions to hunt for yield. This has led to banks taking increasingly leveraged positions, which has increased their risk.

Is the Banking System Safe?

Despite recent events, the Federal Reserve and White House have stated that the banking system is safe. Federal Reserve Chair Jerome Powell recently testified that the banking system remains resilient despite recent “strains.”

President Biden has also assured Americans that their deposits are safe and that the government will take steps to strengthen the rules for banks to prevent future bank failures.

What’s Next?

As the situation continues to unfold, it’s important to stay informed about the latest developments. While the banking system may be safe, it’s clear that there are still risks and challenges that need to be addressed.

Stay up-to-date on the latest news and expert analysis
Consider diversifying your investments to reduce risk
Speak with a financial advisor to discuss your options

By taking these steps, you can help protect your finances and make informed decisions about your future.

Celtics Crush 76ers and Spoil Joel Embiid’s MVP Celebration in Game 3

The Boston Celtics came out on top in Game 3 against the Philadelphia 76ers, crushing their opponents and spoiling Joel Embiid’s MVP celebration. The Celtics played with intensity and precision, leaving the 76ers struggling to keep up.

Key Players

Jason Tatum: The Celtics’ star player had an impressive performance, scoring 28 points and grabbing 6 rebounds.
Kemba Walker: Walker was a force to be reckoned with, contributing 24 points and 8 assists to the Celtics’ victory.
Joel Embiid: Despite the loss, Embiid put up a valiant effort, scoring 30 points and grabbing 13 rebounds.

The Celtics’ victory was a team effort, with every player contributing to the win. Their defense was particularly impressive, holding the 76ers to just 96 points.

Overall, it was a thrilling game that showcased the Celtics’ talent and determination. The 76ers will need to regroup and come back stronger in Game 4 if they hope to stay in the series.

Read More From Original Article Here: Biden Has Overseen Three of the Four Worst Bank Failures in U.S. History

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