TITLE: Falling Dominoes: the Impending Collapse of the US Banking System
It is reported that the former Assistant Secretary of the Treasury of the Federal Reserve said that the Federal Reserve would have to stop its high interest rate policy because it was destroying the balance sheet of the financial sector. The US banking system is not safe because the risk exposure of its five largest banks is twice the global GDP. Due to the global interconnection, the US banking crisis will spread abroad.
Former US Treasury official: The Federal Reserve will have to stop its high interest rate policy
Analysis based on this information:
KEYWORDS: Federal Reserve, Interest rate policy, Balance sheet, Risk exposure, Global GDP, Interconnection, Banking crisis, Collapse
A former Assistant Secretary of the Treasury of the Federal Reserve recently sounded the alarm on the US banking system, warning that its high interest rate policy may be causing irreparable damage to its balance sheet. The issue with high interest rates lies in its impact on banks’ risk exposure. The larger the balance sheet of a bank, the greater the potential losses when interest rates rise, which in turn puts increased pressure on the bank to manage its liquidity.
The report reveals that the risk exposure of the five largest US banks, combined, is double the global GDP. This astounding figure raises serious concerns about the banking system, and we must question why regulators have not reined in the risk-taking of these banks.
What’s even more alarming is the global interdependence of the banking system. If the US banking system collapses, the repercussions will be felt worldwide. The financial crisis of 2008 showed the world how interconnected and dependent global economies are, with many countries barely surviving the fallout of the US subprime mortgage crisis.
While the report may send shivers down the spine of many, the US Federal Reserve has the tools to prevent a financial collapse. However, as the report highlights, the approach taken so far is not enough.
The title of the report should serve as a warning bell. If nothing changes soon, the collapse of the US banking system may be inevitable. And with the interconnections between economies, the knock-on effects will be felt worldwide. The US banking system must take a hard look at their risk-taking behavior and regulators must do more to rein in their excesses.
It is imperative that regulators enforce stricter regulations to protect the balance sheet of the financial sector, not only for US citizens but for the global economy as well. The collapse of the US banking system would cause a chain reaction that could potentially destabilize the entire global financial system, leading to the loss of trillions of dollars, job cuts across the globe, and a global recession.
In conclusion, immediate action is required, and a comprehensive solution must be put in place to prevent imminent financial collapse. We can only hope that regulators and policymakers around the world are taking heed of the warning message from the former Assistant Secretary of the Treasury of the Federal Reserve and acting on it.
WORD COUNT: 415
This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/7503/
It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.
Recommended articles
-
Binance Announces Launch of LQTY Perpetual Contracts in 2023
According to the official news, Binance will launch LQTY 1-20 times U-standard perpetual contract at 20:00 on March 10, 2023.
Binance will launch LQTY …
-
The Literary Metaverse Ecological Platform: A Look into the Future of Literature
According to reports, on the evening of World Reading Day on April 23, Nanjing released the Literary Metaverse Ecological Platform – Wenshu Metaverse. On site, young teachers and s
-
MetaMask and Taylor Monahan: Debunking the Claims of Coin Theft
On April 19th, it was reported that MetaMask, a cryptowallet developer, cited an unexplained coin theft attack by Taylor Monahan in a long tweet, stating that the theft of over 500
-
Fluee completes $10 million Series A financing, led by SineWave Ventures
On April 20th, it was announced that Fluee, a Web3 data management tool development company, has completed a $10 million A-round financing, led by SineWave Ventures. As of now, the
-
What is the Babbitt Area Link (Latest Development of Babbitt Area Link)
What is Babbit Zone Link? Blockchain is a peer-to-peer trading method that can solve some pain points in the Bitcoin network What is the Babbitt area link? It allows people to make payments, transfers or other business activities without relying on third-party trust intermediaries, and can also send Cryptocurrency to their addresses or email accounts Users can use the “Super Node” tool developed by the Shenzhen Municipal Government to connect wallet and private key information. Through this method, the entire process of receiving funds, making payments, and transferring assets can be achieved safely The latest progress of Babbitt’s original chainThe team of Babbitt’s original chain has released the latest progress announcement The Babbitt’s original chain technology team is conducting a community seminar on “consensus mechanism and performance optimization”, and will also invite top mining companies, exchanges and other institutions from around the world to participate. At the meeting, it was announced that a mining incentive plan (consisting of three stages)…
-
UK’s Financial Technology Investments Decline by More than 50% in 2022
It is reported that the latest report of KPMG shows that the total investment in UK\’s financial technology fell by more than 50% in 2022, and the investment in…
-
Bank of Silicon Valley’s Stock Market Crash: A Sign of Turmoil in the Tech Industry
According to reports, the market showed that the US stock market of Bank of Silicon Valley fell by more than 46%.
Bank of Silicon Valley fell more than…
-
HSBC Injects 2 Billion Pounds of Capital into Silicon Valley Bank’s UK Subsidiary
It is reported that HSBC Holdings Limited plans to inject 2 billion pounds (US $2.4 billion) of working capital into the UK subsidiary of Silicon Valley Bank. Chief Executive Officer Noel Quinn and Ian Stuart, head of HSBC UK, told London technology investors on Monday that the bank would invest billions of pounds to ensure that SVB UK continued to operate as usual. A spokesman for the bank confirmed the amount. Bloomberg: HSBC plans to inject US $2.4 billion of working capital into the UK subsidiary of Silicon Valley Bank Analysis based on this information:HSBC Holdings Limited reportedly plans to invest £2 billion ($2.4 billion) of working capital into the UK subsidiary of Silicon Valley Bank (SVB). The announcement was made by HSBC CEO Noel Quinn and Ian Stuart, head of HSBC UK, to London technology investors on Monday. The injection of capital is aimed at ensuring that SVB UK continues to operate normally amid the economic and market uncertainties…
-
Ethereum Layer2 Lockup Reaches $9.09 Billion: Details on ArbitrumOne and Optimism
According to reports, L2BEAT data shows that as of now, the total lockup on Ethereum Layer2 is $9.09 billion, up 0.49% in the past 7 days. Among them, the highest lockdown volume i
-
Big Move: Sun Yuchen Receives 99,900,099 USDT from Tether Treasury
According to reports, WhaleAlert data showed that 99900099 USDTs (US $100279720) were transferred from Tether Treasury to the address marked as Sun Yuchen. 99900099 USDTs were transferred from Tether Treasury to the address marked Sun Yuchen Analysis based on this information:The world of cryptocurrency has been abuzz lately with news of a massive transfer from Tether Treasury to the address associated with Sun Yuchen. According to WhaleAlert data, a whopping 99900099 USDTs, equivalent to over 100 million dollars, was transferred to the address in question. This news has raised many questions among crypto enthusiasts and analysts worldwide, including the reason behind the transfer and what it means for the cryptocurrency market. Let’s take a closer look at what we know so far about this intriguing development. Firstly, who is Sun Yuchen? He is a Chinese entrepreneur and the founder of the blockchain platform Tron, which has been making headlines lately with its moves to acquire BitTorrent and create a decentralized…
-
CoinGecko included 1866 projects that were declared dead last year
According to reports, CoinGecko data shows that of the 6300 projects included in 2022, 1866 have been marked as \”dead coin.\”.
CoinGecko included 1866 projects that were declared de -
#Polygon Network: The Second Largest Blockchain Gaming Network
According to reports, in March this year, the user activity of Polygon Network surged, making it the second largest blockchain gaming network in terms of daily active wallets (dUAW
-
Morgan Stanley: 81% of intraexchange Bitcoin transactions in February came from Binance
According to reports, Morgan Stanley released a report on March 24th, stating that most of the Bitcoin transactions conducted on the exchange in February were concentrated in one e
-
ApeX Pro Offers Flexible Pledge Cycle for APEX Token Holders on Arbitrum Chain
It is reported that ApeX Pro began to support users to choose the Arbitrum chain to pledge APEX tokens yesterday. Its pledge cycle is flexible. Users can purch…
-
Baobab Studios’ Momoguro sets sights on storytelling and building its IP through phased game releases
According to reports, the NFT series Momoguro, launched by Hollywood animation studio Baobab Studios, which won Emmy Awards and was supported by Disney, on Ethereum in early March, has released a roadmap after completing its casting, aiming to focus on story telling and IP construction. It is reported that the phased release of the NFT based game has now started, and the game is expected to be released in the second quarter of 2023. The Momo Box airdrop snapshot will be taken on March 22, and the airdrop will be conducted on March 24. According to NFTGo data, the current Momoguro floor price is 0.1426 ETH, with a total transaction amount of 17.74 million US dollars. The NFT series Momoguro launched by Baobab Studios launches a roadmap: airdrop launched on March 24th Analysis based on this information:Baobab Studios, the Hollywood animation studio that has won multiple Emmy Awards and has been supported by Disney, recently launched its NFT series, Momoguro,…
-
Rumper: Revolutionizing Web3 Social Login
On April 11th, Rumper, a Web3 social login solution, received investment from Coin98, with an undisclosed investment amount. Ramper is developing an SDK/API for authentication, key