The Street reported:
The panic surrounding banks in the markets is also accompanied by outflows from smaller banks. According to new data from the Federal Reserve, Americans withdrew $120 billion in deposits from small banks during the week ending March 15.
Deposits with smaller banks totaled nearly $5.456 trillion, compared to nearly $5.576 trillion in the week ended March 8. It should be noted that deposits have not stopped decreasing since the beginning of the year, but this is the first time that withdrawals have been so high.
The big banks appear to be the big winners of this banking crisis, since they have recorded inflows. Deposits with major banks totaled $10.74 trillion in the week ended March 15, up $67.4 billion. The previous week, i.e. before the collapse of SVB, deposits had fallen by $76 billion with major banks.
In total, Americans withdrew $98.4 billion from banks in the week ending March 15. The total amount of deposits thus amounted to $17.5 trillion compared to $17.6 trillion the week before.
Despite these outflows, regulators insisted on reassuring that the American financial system remained sound. U.S. Secretary of the Treasury Janet L. Yellen convened a meeting of the Financial Stability Oversight Council in executive session by videoconference on March 24.
The Council discussed current conditions in the banking sector and noted that while some institutions have come under stress, the U.S. banking system remains sound and resilient.
A statement from the meeting published by the Treasury department read.
Corroborating with this data, The WinePress had reported on March 13th there were massive withdraws being made across the country from smaller banks, and then transferred to the larger “too-big-to-fails.”
But economic analysts have reported that around 190 banks in the United States face a very similar fate as Silicon Valley Bank, if customers come calling for their money.
AUTHOR COMMENTARY
[4] Labour not to be rich: cease from thine own wisdom. [5] Wilt thou set thine eyes upon that which is not? for riches certainly make themselves wings; they fly away as an eagle toward heaven. Proverbs 23:4-5
I had covered previously that the Federal Reserve, on the weekend proceeding SVB’s collapse, created the Bank Term Funding Program (BTFP) to lend a mega amount of funds to smaller institutions to eat up, to protect their rear-ends, as it was sold. Some estimates that are being shelled out are more than $2 trillion according to some analysts. But it should be understood that this will ultimately cover withdrawals being made on these smaller banks. It is again just another Band-Aid on a gunshot wound, kicking the can down the road for just a bit longer.
The smaller and larger banks WILL fail and WILL collapse. They cannot handle the increased rate hikes and now the Fed plan to hold them at 5% for most of the year moving forward. You are going to start to see a major domino effect in the coming months. The difference is – per the words of Yellen herself – the bigs will be spared, but the smalls will be left to die. They are all insolvent and a ticking time-bomb.
I keep saying it: minimize your exposure to the banks, only keeping the minimums needed to pay bills, make online payments and conduct business; and be diversified with a variety banks. Ultimately, be your own bank.
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
The WinePress needs your support! If God has laid it on your heart to want to contribute, please prayerfully consider donating to this ministry. If you cannot gift a monetary donation, then please donate your fervent prayers to keep this ministry going! Thank you and may God bless you.
Small Banks failing and why. After year of study WEF. UN Agenda 2030 middle class not allowed. No property ownership. Big Banks have signed UN Agenda 2030 but small Banks have not. When they come for your House small Banks will no longer exist.