Concerns are rising that the recent fall of major banks, including First Republic Bank yesterday, could lead to a financial catastrophe in the United States. This has caused fear among investors and bank customers, leading to three instances this year where they have rushed to withdraw their money. The federal government has taken drastic action to prevent a broader panic that could knock down the rest of the financial system. However, nobody knows for certain whether this third time will be the last.
Although the situation has stabilized for now, a crisis has not necessarily been averted. History is filled with examples of leaders who believed they had stopped a disaster but later found they had underestimated the problem, including during the 2007-8 financial collapse. Some analysts worry that other banks may have as-yet undiscovered problems. The Federal Reserve, America’s…
2023-05-02 07:39:52
Link from www.nytimes.com