Telegraph: Over 2,000 US banks are insolventMay 6, 2023
The US banking sector has been hit by a major crisis, with almost half of the 4,800 banks in the US nearly insolvent. Professor Amit Seru, a banking expert at Stanford University, believes that a lot of the US banking system is potentially insolvent. Last week, First Republic Bank was seized by US financial regulators and acquired by JPMorgan. Shares of PacWest and Western Alliance were suspended after their prices fell. Around 2,315 banks across the US are sitting on assets worth less than their liabilities, with the market value of the loan portfolios being $2 trillion lower than the stated book value.