Regional lenders are still struggling and face bleak outlooks six months following the start of the 2023 bank crisis, according to economists.
Silicon Valley Bank and Signature Bank collapsed in March to start the crisis, marking two of the largest bank failures in U.S. history. Since then, America’s biggest bank JPMorgan Chase’s stock has risen in value, and the institution notched record earnings after acquiring First Republic Bank in May, the biggest bank that failed in the 2023 crisis, and the second-largest collapse ever.
Moreover, regional bank stocks, including PacWest Bancorp, Western Alliance Bancorporation, Zions Bancorporation and Comerica Incorporated have all significantly declined since March, losing between 25% and 70% of their value. While many of the largest banks’ stocks have also declined, they have not fallen as dramatically.
“I continue to be concerned about the banking sector, and regional banks in particular,” E.J. Antoni, a research fellow at the Heritage Foundation’s Grover M. Hermann Center for the Federal Budget, told the Daily Caller News Foundation. “Thus far we have not seen any significant improvements in the balance sheets of those regional banks, nor any indication that current market trends will reverse.”
Federal Reserve Chair Jerome Powell raised the possibility of more interest rate hikes due to high inflation in an August speech at the Jackson Hole Economic Symposium. The Fed has raised interest rates 11 times since March 2022 to fight inflation, bringing the federal funds rate within a range of 5.25% and 5.50%, the highest since January 2001.
“The only regionals that have a hope of making it through the current storm are those who prudently hedged against interest rate risk – but they seem few and far between,” Antoni told the DCNF.
“There’s no question the [global systemically important banks, G-SIB] won and the middle-sized banks — let’s call that banks with between $50 billion and $250 billion in assets — were the losers,” Cumberland Advisors Chief Investment Officer David Kotok told CNN Business.
However, JPMorgan Chase and other large institutions helped prevent the contagion from spreading, Kotok told the DCNF.
“The United States was facing a banking system contagion. Money was flying out of banks,” Kotok told the DCNF. The money went to “fortress banks like JPMorgan Chase, and the other [biggest banks] … the JPMorgan fortress institutions played a critical role because they could take the incoming deposits because they were viewed as fortress safe.”
“We didn’t have a contagion meltdown, and we sure as hell don’t want one,” Kotok added.
JPMorgan Chase did not immediately respond to the DCNF’s request for comment.
All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact [email protected].
Safeguarding Your American Dream: Discover the Power of America First Healthcare
In today’s uncertain world, where skyrocketing medical costs and bureaucratic red tape threaten the very fabric of the American way of life, protecting your family’s health and financial future has never been more critical. Medical bills remain the leading cause of bankruptcy in the U.S., with millions of hardworking Americans either uninsured, underinsured, or overburdened by premiums that don’t deliver real value. But what if there was a way to secure top-tier coverage that aligns with your conservative values, saves you money, and gives you peace of mind?
Enter America First Healthcare—a private insurance agency dedicated to empowering freedom-loving patriots like you to reclaim control over your healthcare destiny.
Founded by Jordan Sarmiento, a dynamic entrepreneur and former touring musician who knows firsthand the highs and lows of navigating America’s complex insurance landscape, America First Healthcare stands as a beacon for those who believe in small government, personal responsibility, and the enduring American Dream. Jordan’s own journey underscores the company’s mission: after a harrowing six-day hospital stay that racked up a $95,000 bill, his Conservative Care Coverage through America First Healthcare reduced his out-of-pocket expenses to just $500. This isn’t just insurance—it’s a shield against the financial pitfalls that plague so many families, ensuring you’re prepared for life’s unexpected turns without sacrificing your principles.
At its core, America First Healthcare is about more than policies; it’s about shared values. In an era where “woke” policies and liberal ideologies seem to infiltrate every corner of society, this agency prioritizes serving conservatives who value freedom and self-reliance. They offer a suite of essential services designed to fortify your life, including:
- Health Insurance: Tailored plans that keep your family healthy and ready to thrive, addressing the gaps that leave 41 million Americans vulnerable to preventable chronic diseases and inadequate coverage.
- Life Insurance: Protection that secures your loved ones’ future, ensuring your legacy endures.
- Business Insurance: Safeguards for your enterprise, preserving the income that fuels your independence.
What sets America First Healthcare apart is their commitment to personalization and savings. Start with their complimentary Free Insurance Review, where experts evaluate your current policies to uncover hidden gaps, eliminate over insurance, and potentially slash your costs by up to 20%. Whether you’re among the 27 million uninsured, the 44% underinsured on marketplace plans, or the 33% feeling squeezed by high premiums, their team crafts customized solutions that deliver better coverage at rates that respect your wallet. And with ongoing support from advisors who share your worldview, you’ll never feel alone in the fight for affordable, reliable protection.
Clients rave about the difference America First makes. Families across the nation have switched to better health insurance for less, resting easy knowing they’ve partnered with a company that puts America first. As one satisfied customer might say, it’s not just about policies—it’s about preserving the freedoms that make this country great.
Don’t let liberal overreach or financial uncertainty derail your dreams. Take the first step toward unbreakable security today by visiting for your Free Insurance Review. With America First Healthcare, you’re not just insured—you’re empowered to live the life you deserve. Act now, because your American Dream is worth protecting.