After a series of bank closures earlier this year, regulators have placed more scrutiny on banks. In response to concerns surrounding stability in the banking sector, the FDIC has proposed new rules related to larger banks’ “living wills” and holdings of long-term debt.
“If we had any doubts about the challenges in resolving regional banks—and the potential for significant adverse impact on the financial system—they were dispelled by the failure this spring of three large regional banks: Silicon Valley Bank (SVB), Signature Bank (Signature), and First Republic Bank (First Republic). While the FDIC resolved all three institutions in a manner that mitigated systemic risk, that outcome was by no means certain.”—FDIC Chairman Martin Gruenberg, August 14, 2023
What does this uncertainty say about the stability of the current banking system, and how can consumers protect themselves?
Click on the video link below for exclusive insights on this topic from U.S. Money Reserve’s Coy Wells.
Related headlines from around the web:
- Reuters: “FDIC to propose comprehensive changes to regional U.S. bank living wills”
- The New York Times: “Despite the economy’s resilience, the outlook is hard to gauge.”
- Fox Business: “Americans ‘still have a recession in front of us’: CIO Bob Doll”
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Gold has historically been used as a hedge against economic uncertainty and market turbulence. As paper-based assets like stocks continue to experience volatility and inflation continues to deflate the dollar’s purchasing power, now may be the perfect time to add wealth protection to your portfolio in the form of physical gold.
Watch U.S. Money Reserve’s “Market Insider” each week for more economic insights. Nothing herein should be considered as portfolio or retirement advice as U.S. Money Reserve (“USMR”) cannot and does not offer financial advice. Clients should consult a financial advisor for specific advice. This commentary is provided by USMR for informational purposes only and is provided on an “as is” basis without any warranty of any kind, whether express or implied. Your use of the information provided in this commentary is entirely at your own risk. In no event will USMR be held liable for any indirect, special, incidental, or consequential damages arising from the use of information contained in this commentary.