Bank Risk

Almost 200 US Banks Are at Risk of Silicon Valley Bank-Like Collapse: Study

"Nearly 200 more banks could be vulnerable to the same type of risk that collapsed Silicon Valley Bank (SVB) earlier this month, according to a recently published study.

There are 186 banks across the United States that could collapse if half of their respective uninsured depositors withdraw their funds, researchers with the Social Science Research Network found. Deposits at member banks of up to $250,000 are insured by the Federal Deposit Insurance Corp., although the agency agreed to insure depositors’ funds far above that after SVB’s collapse this month."

I bank at Wells Fargo and complain all of the time about the low interest it pays its customers. But I believe this bank is too big to fail. There have been some scandals over the past several years that gives me angst and my local bank on Lake Avenue and Federal is closing in May.

One of the problems they had was Wells Fargo’s scandalous practice of billing customers for unauthorized accounts could send a former top executive to prison and already has saddled her with millions of dollars in fines. Under an agreement announced Wednesday in the California federal courts, Carrie Tolstedt, the longtime head of Wells Fargo’s retail banking division, agreed to plead guilty to obstructing a government examination of the bank’s misconduct. Tolstedt, 63, faces up to 16 months in prison, a $100,000 fine and three years of supervised release, according to her plea agreement.

So, no matter how safe you are, your bank could collapse.

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