how many us banks have collapsed in the past ten years
HalfDime
Posts: 224 ✭✭✭
In the past ten years, from 2015 to 2025, there have been 20 bank failures in the United States. The most significant collapses occurred in 2023, with the failures of Silicon Valley Bank, Signature Bank, and First Republic Bank, which were among the largest bank failures in U.S. history.
2023: 5 bank failures, including Silicon Valley Bank, Signature Bank, and First Republic Bank
2024: 2 bank failures - Republic First Bank and First National Bank of Lindsay
2025: 1 bank failure so far - Pulaski Savings Bank
The period from 2015 to 2022 saw relatively few bank failures, with some years having no failures at all. However, the dramatic collapses in 2023 made it the biggest year ever for bank failures in terms of total assets, with $548.7 billion in combined assets from failed banks.
It's important to note that while these recent failures are significant, they are far fewer in number compared to the period between 2008 and 2015, when about 500 bank failures occurred.
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As long as we have a credit card, bank deposits are insured up to FDIC limits. Once the credit card goes away, watch out.
Comments
Are you thinking the failure rate may be on the upswing again? And to expect more?
Reasons for failure?
Freedom is like inflation: you lose 2-3% every year. Slow enough that you don't even notice.
The most common reason for bank failures is inept management. That was particularly true, for example, in the case of Silicon Valley bank.
600 banks a year failed from 1921-29.
We lost 9,000 banks in all from 1930-33. 20% of all deposits were gone.
We lost about 1,000 banks in the S&L Crisis of the 1980's, with a peak of about 400 in 1989 or 1990.
In the GFC, we lost about 150 banks.
In 2023 we lost under 5.
We keep losing about the same amount in dollar-adjusted GDP-adjusted deposits but the total number of banks goes DOWN because capital ratios have gone UP and leverage is down DRAMATICALLY.
Banks are the best-capitalized since the 1950's. Mike Mayo, bearish on banks and one of Wall Street's top banking analysts, is bullish on banks for the first time in 2 decades.
Usually leverage. Asset quality is irrelevant or at worst secondary.
Carlyle Capital (not a bank, a REIT) invested only in AAA-backed Treasuries and MBS....but at a 30-to-1 leverage ratio which means they go down 3%, your capital is gone.
Probably not much. M&A will take care of weak banks. After 15 years of regulatory overkill, the banks will be allowed to make money again.
Which means the more money a bank loans out that it does not actually hold, the greater risk it takes with it's depositor's money. Didn't this kind of leveraged banking blow up in 2008? LOL
Note that this "leveraged" method of lending is a major way that new money is created out of thin air.
Freedom is like inflation: you lose 2-3% every year. Slow enough that you don't even notice.
(Keep some extra some where, let wifey or son know, fwiw)
How many have failed since the first one was created?
And yet here we all are, alive and kickin'.
at least until your bank fails. But then again, it's always about you. isn't it.
Freedom is like inflation: you lose 2-3% every year. Slow enough that you don't even notice.
I'm not so sure that is really the important point.
https://pmbug.com/threads/what-is-risky-in-life-zero-reserve-or-full-reserve-banking.5723/
Yelling at clouds on pmbug.com
Banks HAVE to fail. Otherwise, the economy dies. Banks have to start lending as lending has fallen for decades now.
You can be TOO conservative. 90% of all small businesses FAIL in the first 18 months. Would you want a ban on small businesses being formed ?
American banks are the best in the world.
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If only 5 banks failed in 2023 as you stated, then that isn't even close to being enough. And the reason the number is so low is because bank losses are often socialized. They shouldn't be.
It appears that banks are not all that interested in taking in deposits from the general public anymore. Why is that ?
They don't want liabilities. They want to collect fees.
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My bank as well as my accounts within be BOOMIN™. Good times. RGDS!
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Why do you have this opinion?
No losses are being socialized. The equity holders are taking 100% of the hit; anything beyond that the bondholders are taking.
No, they do want deposits but loan demand sucks. It's 2% nominally, negative in real terms. I'll post the chart later.
Without strong loan demand, no need for deposits. Weak loan demand is because of the last 15 years of tough regulations.
He's wrong. They are not AGGRESSIVELY chasing deposits -- remember the 1980's and free toasters ?
-- but they do want low-rate deposits which are very lucrative.
They will NOT pay up in many cases because why pay 5% for deposits if you can only earn 4% on a MBS or Treasury bond ?
The US and global financial system are more overleveraged with (sub) basement level credit standards and (sub) basement credit quality. It only appears otherwise due to an artificial economy from massive fiscal stimulus and still very loose (global) monetary policy.
Most of the risk has been transferred elsewhere, outside the banking system, but the banking system does not operate in a vacuum.
Profitability has not been a problem with the largest banks. JPM makes more money than practically any company making real stuff. The US economy is more over financialized than ever.
Interesting how banks are against government intervention except when it helps them. (No, not really.) Get rid of all government guarantees overt and implied (and I mean all) and let's see how profitable banks really turn out to be. Bank cost of capital would explode upward while credit and asset quality would crater.
there is a snowball effect when banks start to fail.
Freedom is like inflation: you lose 2-3% every year. Slow enough that you don't even notice.
The largest bank run in U.S. history occurred at Silicon Valley Bank (SVB) on March 9, 2023. Customers withdrew a staggering $42 billion from their accounts in a single day, which amounts to $4.2 billion per hour or more than $1 million per second. This massive withdrawal far surpassed previous records, including:
Washington Mutual in 2008: $16.7 billion over 10 days
First Republic Bank in 2023: $212 billion in assets
Signature Bank in 2023: $110 billion in assets
To put the SVB bank run into perspective, it was nearly three times larger than the previous record holder, Washington Mutual, which experienced a $16.7 billion withdrawal over a 10-day period during the 2008 financial crisis. The SVB bank run was particularly severe due to several factors:
Most deposits were uninsured, as they belonged to corporations with accounts exceeding the $250,000 FDIC insurance limit
The tight-knit nature of Silicon Valley's business community allowed news of the bank's troubles to spread rapidly
The bank's insolvency became apparent when it was left with a negative balance of $958 million after the massive withdrawals
This unprecedented bank run led to SVB's collapse and highlighted the potential vulnerabilities in the modern banking system, especially for institutions heavily reliant on specific industries or regions.
The modern financial system will remain resilient as long as enough people believe it to be. This has always been a feature of fractional reserve lending but more so than ever in recent times.
In the 21st century, (US) banks are “safe and sound” in an accounting sense due to an artificial economy creating fake credit worthy customers while the asset mania and central bank (FRB) “put” creates the illusion of “asset quality” and adequate loan collateral, where there even is any. The artificial economy and asset mania also create the illusion of a solvent deposit “insurance fund” (which actually has no money but IOUs like the social security “trust fund”). “Macro prudential” regulation rounds out the foundation of sand underlying bank safety. It’s regulating government sponsored moral hazard which incentivizes imprudent and reckless risk taking. Bank customers mostly don’t know and don’t care what their bank does with their money while government regulators concurrently keep the public “in the dark” on the true state of “troubled” banks. Most bank customers also don't know they have no deposits with their bank but made a loan.
Agree, thanks to the optics provided by the FDIC program which has nowhere near the funds to reimburse such the loss suffered by SVB let alone a massive failure of multiple banks. FDIC was designed to do what it does, **convince **depositors their money is safe. We have seen what loss of faith in a bank does (SVB); now the price of gold is telling us that faith in the dollar is declining.
Most people do not take the hint that what happens around them provides.
Freedom is like inflation: you lose 2-3% every year. Slow enough that you don't even notice.
Sounds like a big nothingburger to me. The banks are fine, the dollar is fine and me gold is fine. BOOMIN!™ THKS!
An interesting research project would be to find out who spread "stories" before the bank's collapse, their interests in "alternative" banking systems and their current careers.
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My theory would be that an employee, or employees, of the bank had some inside information on the bank's troubles, and passed that information along to selected recipients.
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LOL The warning signs in 2007 were a big nothingburger until suddenly they were a double whopper with cheese.
Everything is fine until suddenly it isn't. Risk analysis should always be at the forefront. Complacency results in . . .
Freedom is like inflation: you lose 2-3% every year. Slow enough that you don't even notice.
if i worked there and thought it was failing i would tell everyone i knew to get out now.
And assume like the old commercial they told 2 friends and so on and so on and so on
Anyone inside a corrupt bank that knows anything that could benefit me better tell me yesterday. If I find out later they could have saved me thousands of dollars and didn't they would have a problem. Same as if if they knew their chemical company was dumping toxic waste at the local elementary school. If you have the ability to blow that whistle you better blow it or its pitchfork time and then a shallow grave somewhere.
conspiracy theory? LOL. It's simple; the bank became insolvent (for whatever internal issue) and the word spread like wildfire.
Freedom is like inflation: you lose 2-3% every year. Slow enough that you don't even notice.
Then you need to do more research.
Incorrect assumption leading to incorrect conclusion.
back up your statement. Mine is backed up by the quoted report of the bank's failure.
Freedom is like inflation: you lose 2-3% every year. Slow enough that you don't even notice.
Yes, it failed because it went insolvent. Thats not in question or the question i asked. If you want to know more you'll research it.
You have to be a special combo of crooked and sub moron IQ to fail at fractional reserve banking .
charge 30% interest compounded daily for loans pay 2 or 3% simple interest (subject to minimum balance (termsand conditionsapply)))))))) on deposits , oops this just too difficult , can't handle such razor thin margins .
solicit any and all deposits and loan carefully it aint rocket surgery
Setting up guillotines would be a better response than government backstop for bank failures. A lot of messy public executions for financial crime would save taxpayer money. probably only have to clean house every few decades .
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No.
It is just a theory that doesn't have any impact on my own personal situation one way or the other.
But I will hold on to that theory (loosely) until someone disproves it.
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It actually does. Think bigger.
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Are you going to disprove my theory or not ?
No need for the vague hints and riddles.
If you have something relevant to add, spit it out and demonstrate that you actually know something about the topic.
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Was the bank insolvent because of its investments or because all the money was taken out?
Your answer will focus on the management of the bank. I'm asking you to look beyond. Look bigger.
I'm not gonna say anymore. If you're interested then you'll look, if not, then you'll stay in your echo chamber prison.
simple: money was taken out because bank was insolvent.
Freedom is like inflation: you lose 2-3% every year. Slow enough that you don't even notice.
If I recall, they had massive paper losses due to their position in 30-year treasuries.
When those matured, they would have been just fine, but folks pulled their funds early.
The only problem is none of your doomsday fantasies ever come true. This great nation has been on fire since 2007. Exit bunker, breathe fresh air, sunshine on your grape. It's BOOMIN!™ out here. RGDS!
gold price tells us the market believes they are coming true. LOL
Freedom is like inflation: you lose 2-3% every year. Slow enough that you don't even notice.
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This isn't a class, or a quiz, and you are not a teacher.
You continue to ask questions (as usual) but don't contribute anything substantial to the discussion.
And you still have not demonstrated that you know anything about the topic.
Explain your point of view, reasoning, and evidence (or not).
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Gold prices tell us the same thing that every other item on planet earth is telling us. Inflation. RGDS!
No. I'm not a teacher and this isn't a class. It's a forum to encourage thinking beyond echo chamber prisons.
You have proven to be incapable so I'll go no further with you.
" It's a forum to encourage thinking beyond echo chamber prisons. "
Perhaps for some.
" You have proven to be incapable so I'll go no further with you. "
oh oh.... dcarr.... sounds like you have flunked the class!!
Per Grok:
Silicon Valley Bank (SVB) issued a significant announcement on March 8, 2023. This was when SVB Financial Group, its parent company, disclosed that it had sold $21 billion in securities from its portfolio at a $1.8 billion loss and planned to raise $2.25 billion in fresh capital to shore up its finances. This announcement, intended to reassure stakeholders, instead triggered widespread panic among depositors and investors, leading to a massive bank run. By March 9, 2023, the situation escalated as customers withdrew $42 billion in a single day, and by March 10, 2023, regulators stepped in to shut down the bank.
Several fund started advising clients to pull funds from SVB after SVB's announcement. As to why the announcement triggered panic, it's all about the timing. It was issued the same day that Silvergate Bank threw up the white flag after some very public struggles. A deep dive on that subject is posted here:
https://www.piratewires.com/p/inside-biden-admin-plot-to-destroy-silvergate-and-debank-crypto-for-good-nic-carter
SVB's CEO and other execs were selling their personal holdings of SVB stock within the weeks prior to the March 8 announcement:
https://www.pmbug.com/threads/silicon-valley-bank-failure.5258/
^^^ That's a trip through time capturing news on the event as it happened.
Yelling at clouds on pmbug.com
and what does that say for the future of a dollar (and an economy built around it) that buys less? a doomed dollar pretty means doomsday for that dollar. Fantasy? LOL it's happening.
Freedom is like inflation: you lose 2-3% every year. Slow enough that you don't even notice.
It means that as time goes on you earn more dollars, spend more dollars. Nothing is doomed, the dollar remains strongest currency on the planet and I've yet to find a single human unwilling to accept one. RGDS!
Sure, just keep adding more zeros (or printing more dollars) and the problem will be solved. LOL
You should get a job at the FED, they hire those that don't think ahead.
Freedom is like inflation: you lose 2-3% every year. Slow enough that you don't even notice.