Fmr. US Treasury Official: Five US banks May Collapse, Lose Twice World GDP
A former US Treasury official has warned that the American banking system is “not safe” and the collapse of the five largest US banks can incur losses twice as much as the world’s Gross Domestic Product (GDP).
Former US Assistant Treasury Secretary Paul Craig Roberts said on Monday that despite US President Joe Biden’s recent statement about the safety of bank deposits after the collapse of two major banks, the banking system in the US is not capable of covering the risks associated with banks’ collapse.
“The banking system is not safe, because the 5 largest US banks have risk exposure that is two times world GDP,” Roberts was quoted as saying. “There is no possibility that the banks have the capital to cover this risk.”
On Friday, US regulators closed the Silicon Valley Bank (SVB) after depositors hurried to withdraw their funds all at once. This marks the largest bank failure since Washington Mutual at the height of the 2008 financial crisis.
However, the banking crisis continued to unfold swiftly as o
Article from LewRockwell
