The Next Phase of the Banking Crisis

Major US bank CEOs testify during a Senate Banking, Housing, and Urban Affairs Committee Hearing on the Annual Oversight of the Nations Largest Banks on Capitol Hill in Washington, on Sept. 22, 2022. Saul Loeb/AFP via Getty Images

Commentary

In the most recent failure in the banking sector, earlier this week First Republic Bank collapsed, was placed into Federal Deposit Insurance Corp. (FDIC) receivership, and had most of its assets sold to JPMorgan Chase. With some $232 billion of assets, this marked the second-largest U.S. bank failure ever, only surpassed by Washington Mutual in the early days of the global financial crisis in 2008.