New York University economics professor Nouriel Roubini, who predicted the 2008 crisis, said the US banking system was facing a serious challenge and was headed for collapse. It has been reported Fox Business.
According to him, the United States is heading towards a credit crisis that could plunge the economy into recession.
He argues that the reason may be in regional banks that issue loans for mortgages, commercial real estate, businesses, small and medium-sized businesses.
The economist said that after the collapse of Silicon Valley Bank, smaller banks would make it harder to get loans, and therefore the United States would “start a credit crisis.”
Previously, it was learned that the administration of US President Joe Biden was also involved. will require Tightening regulations for mid-size banks with assets of the US Federal Reserve System (FRS) rising from $100 billion to $250 billion.
In the first half of March, the press service of the Federal Deposit Insurance Corporation (FDIC) announced the bankruptcy of Silicon Valley Bank, an American investment that ranks 16th in assets in the United States. SVB has become the largest US bank to go bankrupt in the past 15 years.