How Many More Bank Failures Will It Take?

How many more bank failures will it take to shake Americans’ confidence in the ‘full faith and credit’ of the U.S. government?

Leo Hohmann

Is America’s banking system safe?

The data shows that the three American banks that have failed so far this year represent more deposits than the 25 banks that collapsed in 2008.

It was announced today, May 1, that San Francisco-based First Republic Bank was seized by federal regulators and sold off to JP Morgan, making it the third major U.S. bank to collapse in the past two months after Silicon Valley Bank and Signature Bank fell apart in March.

Financial experts are urging calm, suggesting everything will work itself out if we just trust the system. But you really have to wonder if this isn’t all happening by design.

The Fed is coming out in July with its new FedNow product, which will provide the platform for a central bank digital currency — a currency nobody really wants. I’ve yet to meet the first American who’s told me, “I just can’t wait to have that new digital dollar in my digital wallet.”

So, how do you get Americans to want a CBDC? You trash the existing fiat currency, that’s how. Create fear, even panic among the masses. Then you promise a way out through the launch of the new CBDC.

Federal regulators no doubt would love to see bank runs, as long as those bank runs are focused on the smaller and mid-sized banks, because that means more money flowing into the top-tier largest banks. When the dust settles, it’s my opinion that the Fed wants nothing more than to see a handful of large banks standing. It will be much easier for them to deal with half a dozen big banks, as opposed to hundreds of small, medium and large ones, when making the historic transition to a truly cashless society.

So back to our question: Are U.S. banks safe?

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