5min chapter

Coin Stories with Natalie Brunell cover image

Danielle DiMartino Booth: Economic Downturn Worse Than '08 Global Financial Crisis? Bank Failures, Consolidations and Fed Pivot

Coin Stories with Natalie Brunell

CHAPTER

The Consolidation of Small Banks

Small regional banks are the backbone of America. If they disappear and there's less biodiversity in that industry, the working class does not win out. Dodd Frank put small banks under massive regulatory weight. They stress tested a bank that had $10 billion in assets what we would consider to be a small community bank. Now we're finding out about Silicon Valley Bank lo and behold, when you get to those other assets on their balance sheet, which first citizens bought as we're recording today for 23% of the value of the loan book. So if the Fed was to take interest rates back down to zero bound they wouldn't accomplish it. And that's why you saw tiger taking its claws into private

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