Foreseeing the global crisis in 2008, economist Nouriel Roubini said hundreds of small US banks could technically go bankrupt due to rising rates.
“When interest rates rise, the value of securities and loans falls. And then there are the big problems with liquidity and solvency.” aforementioned Roubini in an interview with Bloomberg TV.
The economist noted that 30-year mortgage loan portfolios accumulated on the balance sheets of credit institutions that are issued at fixed rates during the time they are kept at the same level by the US Federal Reserve System (FRS).
Roubini estimated possible losses on such loans and securities at $1.8 trillion with $2.2 trillion in capital.
In the second half of March, Lawrence McDonald, former vice president of the Lehman Brothers financial institution (the bankruptcy of this institution in 2008 is considered the beginning of the global financial crisis) declarationThat Fed chairman Jerome Powell lied about the state of US regional banks.
Press service of the Federal Deposit Insurance Corporation (FDIC) in the first half of March knowledgeable About the destruction of the American investment Silicon Valley Bank (SVB), which ranks 16th in terms of assets in the United States. SVB has become the largest US bank to go bankrupt in the past 15 years.
At the same time, New York State officials closed Signature Bank due to systemic risks.