Why Hundreds Of U.S. Banks Are At Risk Of Failing

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Across the U.S., hundreds of small and regional banks are feeling stressed and may be at risk of failure. Of about 4,000 U.S. banks analyzed by the Klaros Group, 282 banks face stress from commercial real estate exposure and potential losses tied to higher interest rates. Most banks facing risks are categorized as small, or community, banks. Though the risk is less systemic compared to the Big Banks, community and regional banks are an important source of credit to local businesses and governments. “There’s no doubt in my mind there’s going to be more bank failures,” former chair of the U.S. Federal Deposit Insurance Corporation Sheila Bair told CNBC. Watch the video to learn more about the risk of commercial real estate, the role of interest rates on bank balance sheets and what it may take to relieve stress on banks — from regulation to mergers and acquisitions.

Chapters:
1:40 Chapter 1 – Stressed banks
4:56 Chapter 2 – Commercial real estate
6:21 Chapter 3 – ‘Unrealized’ losses
7:51 Chapter 4 – Rescuing banks
9:58 Chapter 5 – Regulation
11:57 Chapter 6 – Bank failures

Produced and Edited by: Andrea Miller
Reporting by: Hugh Son
Animation: Christina Locopo
Supervising Producer: Lindsey Jacobson
Additional Footage: Getty Images

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Why Hundreds Of U.S. Banks Are At Risk Of Failing

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45 COMMENTS

  1. Wasn’t the commercial real estate sector trending downwards with higher and higher office vacancy rates due to remote work? And higher interest rates are stressing it even further. I’m surprised we expose this much risk.

  5. Gee this a really indicative of a booming economy that Democrats are parroting and desperately trying to sell. Had enough of Bidenomics/Obama's Third Term yet? Biden deserves a second term as much as Jimmy Carter did.

  7. We don't have money for stock music for this video- have the intern bang something out on a piano and use that. Sir, that's the staff kitchen line cook! Good enough, just do it son.

  9. Hello! NIce to see great video! I got a lot best advices from the this video. Thank you so much for teaching and spending time to make such wonderful and educational videos 🙂 Good Luck

  13. This is propaganda at it's finest, if it's only the small banks struggling for capital and not the big banks, then why is PNC and Citizens calling me every week asking me to deposit money into accounts and if I'm interested in other services? My local credit union is not doing that, although they are offering some of the best CD rates which can be a red flag. Either way it's misleading that big banks are not in the same boat.

  17. Is this a joke? The only reason why banks fail now is to give so done else the opportunity to take it over. This is what happens when we give some the power to create money from thin air.

  22. CORRECTION: Many of the commercial loans that were due this year have already been pushed out a year. The new statistic is that the peak will come due in 2025. If there is a credit reckoning, it will be next year.

  29. The market is out of control, and banks are failing one by one. Could there be any potential in the stock market for a boomer like me? I am working on an approximate estimate of $3M for retirement.

  31. Sadly, banks continue to stumble, mortgage rates is on the rise with higher imports and lower exports, yet the FED is to lessen cost. So, where do we grow and safeguard our money now? something will eventually break if they keep raising interests and quantitative tightening.

  32. I'm favoured, Getting my own Truck has always been my Dream for my business. I just acquired 2 recently, earning $32K weekly has been really helpful. I can now give back to the locals in my community and also support Charity Organizations. I really appreciate your videos

  33. Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $560K for sometime now, my major challenge is not knowing the best entry and exit strategie;s … I would greatly appreciate any suggestions.

  35. Oh, this crap again? Let them fail, and then make sure no one that's operated in this shishow will EVER make a business decision again.

  41. Remember inflation is transitory……Lets Go Brandon Lets Go Brandon Lets Go Brandon Lets Go Brandon Lets Go Brandon Lets Go Brandon Lets Go Brandon

Comments are closed.