{"id":20649,"date":"2023-05-07T11:45:08","date_gmt":"2023-05-07T11:45:08","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/swedbank-strategist-says-us-banking-crisis-is-spreading-warns-of-more-banks-failing-in-vicious-spiral-economics-bitcoin-news\/"},"modified":"2023-05-07T11:45:08","modified_gmt":"2023-05-07T11:45:08","slug":"swedbank-strategist-says-us-banking-crisis-is-spreading-warns-of-more-banks-failing-in-vicious-spiral-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/swedbank-strategist-says-us-banking-crisis-is-spreading-warns-of-more-banks-failing-in-vicious-spiral-economics-bitcoin-news\/","title":{"rendered":"Swedbank Strategist Says US Banking Crisis Is Spreading \u2014 Warns of More Banks Failing in ‘Vicious Spiral’ \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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A strategist at Swedbank, a Swedish bank, has warned that the regional banking crisis in the U.S. is spreading. After several bank failures, he stressed that Pacwest Bank, Western Alliance Bank, and First Horizon Bank have all been \u201csubject to financial meltdowns.\u201d<\/strong><\/p>\n

Swedbank on U.S. Banking Crisis Spreading<\/h2>\n

P\u00e4r Magnusson, a fixed income strategist at Swedbank, a Swedish bank based in Stockholm, has warned about the spreading of the U.S. banking crisis. He reportedly said<\/a>:<\/p>\n

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After Silicon Valley Bank, Signature Bank, First Republic Bank and now potentially Pacwest Bank, Western Alliance Bank, and First Horizon Bank all having been subject to financial meltdowns, the proverbial cat will be very difficult to put back into the bag.<\/p>\n<\/blockquote>\n

First Republic Bank<\/a> was seized by regulators last week and most of its assets were sold to JPMorgan Chase. It was the biggest U.S. bank failure since 2008. Silicon Valley Bank<\/a> and Signature Bank<\/a> collapsed in March. Following the seizure of First Republic Bank, shares of several banks, including Pacwest and Western Alliance Bank, plummeted.<\/p>\n

\u201cIt is hard not to see the irony of regional U.S. banks having successfully lobbied for less regulations during the Trump administration only to find that less regulations now is making them vulnerable to bank runs,\u201d Magnusson opined.<\/p>\n

The Swedbank strategist further cautioned:<\/p>\n

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The U.S. regional bank crisis is spreading. With every bank that succumbs to shrinking deposits and\/or market distrust, the probability of more banks falling victim to similar fates grows. A vicious spiral may be about to take hold.<\/p>\n<\/blockquote>\n

\u201cA general risk-off reaction is becoming increasingly likely, and you should position for this risk,\u201d the strategist concluded.<\/p>\n

Despite multiple bank failures, Federal Reserve Chairman Jerome Powell stated that the U.S. banking system is \u201csound and resilient<\/a>\u201d as Fed officials raised interest rates by 25 basis points this week. The Federal Reserve recently revealed that 722 banks reported unrealized losses exceeding 50% of capital<\/a> in the third quarter of 2022.<\/p>\n

Do you agree with the Swedbank strategist that the U.S. banking crisis is spreading? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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