{"id":1924203,"date":"2023-05-04T11:41:20","date_gmt":"2023-05-04T15:41:20","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-just-said-banks-are-sound-and-resilient-another-one-might-collapse\/"},"modified":"2023-05-04T11:44:37","modified_gmt":"2023-05-04T15:44:37","slug":"federal-reserve-just-said-banks-are-sound-and-resilient-another-one-might-collapse","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-just-said-banks-are-sound-and-resilient-another-one-might-collapse\/","title":{"rendered":"Fed: Banks are strong, but one could fail."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffederal-reserve-just-said-banks-are-sound-and-resilient-another-one-might-collapse%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1924203&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>PacWest Stock Plummets Amid Financial Sector Worries<\/h2>\n<h3>First Republic Bank Collapse Sparks Panic<\/h3>\n<p>Investors are in a state of panic as PacWest stock plummeted this week, following the collapse of First Republic Bank. The Beverly Hills-based bank saw its shares decline by more than 45% between Wednesday&#8217;s market close and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/twitter-votes-for-elon-musk-to-sell-billions-in-tesla-stock-spacex-founder-mocks-unrealized-gains-tax-senator\/\" title=\"Twitter Votes For Elon Musk To Sell Billions In Tesla Stock, SpaceX Founder Mocks \u2018Unrealized Gains Tax\u2019 Senator\">early morning trading<\/a> on Thursday. The decline comes despite Federal Reserve officials assuring the market that the banking system is &#8220;sound and resilient.&#8221;<\/p>\n<p>First Republic Bank&#8217;s collapse has sparked a wave of panic among account holders with balances above the Federal Deposit Insurance Corporation threshold at medium-sized banks. Silicon Valley Bank and Signature Bank have also collapsed in recent weeks, with account holders rushing to withdraw their funds.<\/p>\n<h3>PacWest Considers Strategic Options<\/h3>\n<p>PacWest has confirmed that it is considering strategic options, including a sale or capital raise, following the decline in its stock prices. The company has received interest from multiple &#8220;potential partners and investors,&#8221; according to a statement released on Wednesday.<\/p>\n<p>Despite the decline in stock prices, PacWest has not experienced any out-of-the-ordinary deposit flows following the sale of First Republic Bank and other news.<\/p>\n<h3>Interest Rate Hikes Contribute to Losses<\/h3>\n<p>The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-just-said-banks-are-sound-and-resilient-another-one-might-collapse\/\" title=\"Fed: Banks are strong, but one could fail.\">recent quarter-point target federal funds rate hike announced<\/a> by Federal Reserve officials is meant to combat inflationary pressures but often results in constrained economic activity. Interest rate hikes contributed to the substantial loss incurred by Silicon Valley Bank as executives liquidated a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-calls-for-crackdown-on-senior-bank-executives\/\" title=\"Biden Calls For Crackdown On Senior Bank Executives\">long-term bond portfolio<\/a> to cover withdrawals.<\/p>\n<p>Assets in the banking system are now $2 trillion lower than their book value as a result of the recent Federal Reserve efforts, according to a study from analysts at the National Bureau of Economic Research.<\/p>\n<h3>Recession Forecasted for End of Year<\/h3>\n<p>Monetary policymakers have concluded that the instability in the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cleveland-fed-president-expects-target-interest-rates-to-rise-above-5\/\" title=\"Cleveland Fed President Expects Target Interest Rates To Rise Above 5%\">financial system warrants<\/a> a recession forecast for the end of the year, followed by a predicted recovery over the course of the subsequent two years. The risks around the baseline would be skewed to the downside for both economic activity and inflation, particularly because historical recessions related to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-officials-reveal-when-they-expect-a-recession-to-strike\/\" title=\"Federal Reserve Officials Reveal When They Expect A Recession To Strike\">financial market problems tend<\/a> to be more severe and persistent than average recessions.<\/p>\n<ul>\n<li>PacWest stock declined more than 45% between Wednesday&#8217;s market close and early morning trading on Thursday<\/li>\n<li>First Republic Bank, Silicon Valley Bank, and Signature Bank have all collapsed in recent weeks<\/li>\n<li>PacWest is considering strategic options, including a sale or capital raise<\/li>\n<li>Interest rate hikes contributed to the substantial loss incurred by Silicon Valley Bank<\/li>\n<li>Monetary policymakers have forecasted a recession for the end of the year<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>PacWest stock plummeted as investors remain worried about the financial sector, a decline which occurred despite Federal Reserve officials assuring market actors hours earlier that the banking system is \u201csound and resilient.\u201d First Republic Bank imploded on Monday, weeks after Silicon Valley Bank and Signature Bank similarly collapsed, as account holders with balances above the<\/p>\n","protected":false},"author":99,"featured_media":1924204,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[541],"tags":[8961,10875,7498,5529],"class_list":["post-1924203","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-daily-wire","tag-banks","tag-fail","tag-fed","tag-strong"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1924203","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1924203"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1924203\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1924204"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1924203"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1924203"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1924203"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}