US Banking Sector on Brink of Seismic Shift – Experts
Medeea Greere, an independent publisher, is now on Telegram at https://t.me/AMGNEWS2022 and exists only on reader support as we publish Truth, Freedom and Love for public awareness. Thank You for your support!
The major turmoil that rocked the US financial sector in March following the collapse of several midsize banks is far from over, experts have told CNBC.
The outlet talked to a dozen executives, advisers, and investment bankers who predicted that rising interest rates, losses on commercial real estate, and heightened regulatory scrutiny will add to the pressure on regional and midsize banks, leading to a wave of mergers.
Many of the country’s 4,672 lenders will be taken over by stronger banks over the next few years, either through market forces or regulators, the experts warned.
“What is coming will likely be the most significant shift in the American banking landscape since the 2008 financial crisis,” the report cited them as saying.
“You’re going to have a massive wave of M&A among smaller banks because they need to get bigger,” said the co-president of a top-six US bank, who declined to be identified. “We’re the only country in the world that has this many banks,” he added.
According to Brian Graham, a banking veteran and co-founder of advisory firm Klaros Group, for at least 15 years “US banks have been awash in deposits and with low rates, and it cost them nothing.” He added, however, that the situation has “clearly changed.”
One chief executive projected that some banks will survive by “being the buyer rather than the target,” noting “we could see over time fewer, larger regionals.”
The forecast was echoed by Fitch banking analyst Chris Wolfe, who previously worked at the Federal Reserve Bank of New York. Half of the country’s banks will likely be swallowed by competitors in the next decade, he warned.
Several US banks with combined assets of more than $500 billion collapsed over 10 turbulent weeks earlier this year. Their rapid demise fueled fears of a repeat of the global financial system’s meltdown in 2008.
The latest crisis began in March, when crypto-focused regional lender Silvergate declared plans to voluntarily liquidate after suffering losses due to the collapse of crypto exchange giant FTX. Two days later, US regulators shut down tech and start-up focused Silicon Valley Bank.
Soon after, San Francisco-based First Republic Bank fell victim to the turmoil. It was seized by US financial regulators and acquired by JPMorgan, having already received a $30-billion rescue shot from top Wall Street banks in the form of deposits.
Regional lender PacWest Bancorp became the latest American bank to be caught up in the crisis in May, when it announced talks with potential partners and investors about strategic options following a 60% stock rout.
Economists continue to raise concerns about the stability of the US banking sector despite claims from regulators that the industry is financially sound.
Activated by Protocol 19 the Black Swan Event Will be the Start of the New Flare Network of the ISO Family of Currencies
Unseen, unheard, unprecedented – the game of finance and currency is set to change forever. Get ready for a paradigm-shifting evolution that will leave the world gasping – welcome to the Black Swan Event, where the old guards of finance crumble, giving way to a new world order, driven by the Protocol 19.
This is the dawn of the ISO Blockchain and the fall of the traditional fiat currency. The initiation of the Black Swan event will light up the landscape of the Flare Network, the latest star in the ISO family of currencies. As the old world teeters on the precipice of obsolescence, we find ourselves amidst the twilight of the age of darkness and the dawn of a luminous future.
But what does this signify? In essence, we are talking about a seismic shift, a veritable Jumanji-esque upheaval of financial systems as we know them. We are moving from the Swift system to the Quantum Financial System. . .
Also: Global Banking Collapse: Tens of Thousands of Small Banks Close Across the World – The Rise of Quantum Financial System (QFS) – https://amg-news.com/global-banking-collapse-tens-of-thousands-of-small-banks-close-across-the-world-the-rise-of-quantum-financial-system-qfs/
Don’t Miss This: The GESARA Law Was Promulgated and Almost No One Knew About It! – https://amg-news.com/the-gesara-law-was-promulgated-and-almost-no-one-knew-about-it/