[Regnum] US authorities established control over the American bank Republic First, closed it and appointed the Federal Deposit Insurance Corporation (FDIC) as its successor. This incident turned out to be the first collapse of a credit institution in the country in 2024, according to a statement issued by the corporation on April 26.
“Republic Bank has been closed by the Pennsylvania Department of Banking and Securities, which has designated the Federal Deposit Insurance Corporation as its successor,” the FDIC said.
It is clarified that in order to protect depositors, the corporation has already reached an agreement with another credit institution, Fulton Bank, to accept most of the deposits and acquire the assets of the collapsed bank.
Difficulties in the US banking sector worsened in March 2023. The problems began after California state regulators closed Silicon Valley Bank, which was one of the 20 largest commercial American banks, experts noted.
As Regnum reported, the USA, Japan and European countries will suffer a “terrifying” recession, which will be accompanied by the collapse of the banking system, investor Jim Rogers said in May 2023.
The investor pointed out that states are trying to combat the collapse of banks through their merger with larger organizations.
On March 10, 2023, the 16th largest US bank, Silicon Valley Bank (SVB), went bankrupt. The head of the Federal Reserve System (FRS), Jerome Powell, blamed the organization's management for the incident. In his opinion, the SVB board failed to properly manage risks.
On March 21, former vice president of the Lehman Brothers financial corporation Lawrence MacDonald said that the threat of bankruptcy of at least 50 more banks looms over the United States if the American authorities do not get rid of structural problems in the economy.
The main structural problem being a government, from top to bottom, operated by economic illiterates.