“FRB is the biggest borrower to collapse since the 2008 financial crisis,” the publication said.
According to Economist and Chief Communications Officer of BitRiver, Andrei Loboda, the total assets of failed banks in the United States at the beginning of the second quarter of this year have already exceeded $0.5 trillion, and this figure will increase.
“It seems that the United States is confidently entering not only the era of banking collapse, but also an era of total economic crisis, in which industry and the regional ruling clans do not get along just not,” he said.
According to the expert, one of the reasons for the crisis is the increase in the FRS rate. So if the rate goes up one percent, that’s minus $100 billion of bank profits. The rate has already risen to 5% and is expected to hit 5.25% on May 3, Loboda said.
Money becomes more expensive, loans become more inaccessible, suddenly, everything becomes more expensive in the United States, the standard of living is deteriorating, industry, mortgages, the stock market are constantly falling, and with them consumer demand and Americans’ personal finances, Loboda said. “The Fed’s contribution to the outbreak of the crisis is no less important than the incompetence of the management of the troubled banks themselves. Deflation has reappeared on the horizon in the United States – an economic symptom dangerous,” the expert said.
He noted that ignoring the objective problems of the economy plays a cruel joke on America’s domestic agenda. FRB is the second largest bankrupt US bank in history, and no matter who buys it, it will no longer be possible to flood the problem with unsecured dollars with the rapid development of negative events for the US economy , and, as we see, they are already unavoidable.
When trading on the New York Stock Exchange opened in late April, the price of an FRB share fell 30.37% to $4.31. At present, the bank’s share price has reached an all-time high, and in annual terms, its shares have depreciated by 97%.
On Monday, it was also learned that JPMorgan Chase & Co will buy most of FRB’s assets as part of the latest bailout effort led by US regulators. JPMorgan will commit $173 billion in loans, $30 billion in securities and $92 billion in deposits from bankrupt lenders.
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