Tuomas Malinen on Geopolitics and the Economy

Banking crisis

The fragility of the U.S. banking system

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Tuomas Malinen
Sep 14, 2023
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Issues contributed:

  • There are great number of U.S. banks with a high risk of failing, if bank runs recommence.

  • Recession is a likely to act as a trigger for another round of bank runs.

  • The measures authorities are considering to quell the runs are likely to be ‘draconian’.

In this post, I will continue to mull through the U.S. second quarter banking data. It continues to paint a worrying picture of illiquid and fragile banking system, on which I first warned on 24 February. While the ‘silent run’ shows signs of stabilizing, for now, the fast approaching economic downturn can change this in an instant.

GnS Economics has published a deposit withdrawal warning for four another U.S. banks. Next week we start to publish a list of the most safe U.S. banks.

In search for liquidity

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