Former Dallas Fed head warns the US regional banking crisis is 'more serious than we currently understand'

 

May 3, 2023

There have been three major bank failures so far this year, and some experts claim the carnage may not yet be at an end.

Former Federal Reserve Bank of Dallas President Robert Kaplan told Bloomberg Television this week that he thinks "the banking situation may well be more serious than we currently understand."

Silicon Valley Bank collapsed in March, marking the second-largest bank failure in U.S. history. Signature Bank, which had $110 billion in assets at the end of 2022, making it the 29th largest U.S. bank at the time, failed shortly thereafter.

Americans have pulled nearly $100 billion out of banks since, according to Fox Business.

Biden Treasury Secretary Janet Yellen claimed in mid-March that the "banking system is sound." However, just weeks later, First Republic Bank, which had assets over $200 billion and catered to wealthy elites, similarly failed.

First Republic's demise represented the second-largest banking failure in American history, trailing the 2008 collapse of Washington Mutual.

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