Expert Gary Korolev warned of a wave of bankruptcies in regional banks in the United States, and said that US regional banks are still under great pressure due to the outflow of deposits.
The investor added, in an interview with “Novosti” agency, that the flow of depositors’ money outside the US regional banks may lead to a banking crisis or a collapse in lending.
Korolev, who is the CEO of Sovereign Wealth Management, believes that the US authorities will not be able to completely stop the series of collapses.
He said, “Inflation is still a big fear for the US Federal Reserve, and in the board they fear cutting interest rates in the short term.”
The US financial authorities seized the “First Republic” bank, and it is expected that the “GB Morgan” bank will acquire it after the failure of efforts to rescue the troubled bank.
The bankruptcy of the “First Republic” became the second largest collapse among American banks, and according to a classification by “Bloomberg” agency, “First Republic” ranked second, and the bank’s assets amounted to $ 229 billion, while “Washington Mutual” collapsed in 2008 ranked first.
It is noteworthy in the Bloomberg report that three of the four largest bankruptcies of US banks occurred in the past two months.
This article was originally published by RT.
