The U.S. Federal Deposit Insurance Corporation is set to take control of First Republic Bank in the near future due to its poor financial condition, according to a recent report. Shares of the troubled regional bank plummeted on Friday following a CNBC report indicating that it is likely to be seized by federal financial regulators, making it the third bank to fail since Silicon Valley and Signature banks. FDIC officials have reportedly determined that First Republic Bank has run out of time to find a rescue involving other banks, leaving the agency with no other option but to take control of the bank, Reuters reported.
A disaster waiting to happen, or the purposeful takeover of the banking system?
As a result of the recent bank failures, some customers of mid-sized and community banks have been withdrawing funds from smaller banks and moving them to larger, systemically important banks that are deemed “too big to fail.” This trend may worsen if more banks fail.
The FDIC typically insures deposits up to $250,000 per depositor, leaving any excess balances vulnerable in the event of a bank failure. While federal regulators granted systemic risk exceptions and guaranteed all deposits at Silicon Valley Bank and Signature Bank, the Treasury Department has indicated that uninsured deposits at banks without systemic risk exceptions will not be backed by regulators.
As we reported, In the wake of the significant economic repercussions resulting from the collapse and subsequent takeover of Silicon Valley Bank and Signature Bank by the FDIC, 186 banks have been flagged as having a comparable risk profile that leaves them susceptible to a similar fate.
Better Start Prepping for Major Economic Troubles!
It’s time for people to take action and protect themselves from the impending financial disaster. We can’t rely on the government to bail us out when their policies are what caused the problem in the first place. It’s time to get our finances in order, invest in assets that hold their value during times of economic turmoil, and become more self-sufficient.
Preparing for a possible Economic Collapse
We advise reading our article on Preparing for an Economic Collapse. We talk about the history of economic collapses, list the steps you need to take, and talk about what will most likely happen when the banking system goes down. You can read the article here.
Be Prepared to Feed Yourself when the Collapse Hits!
- Best Emergency Food: The Top Survival Food Supplies
- Survival Food – 56 Long-Term Survival Foods and Supplies at the Grocery Store
- Prepper 101: Your Survival Guide to Getting Started
Grocery Options that ship right to your Home:
