Broker Check
Rising rates hurt banks by chris@kilmerco.com

References

Charts

  • Fed lowered interest rates to nearly 0% - https://fred.stlouisfed.org/series/fedfunds
  • Fed increased money supply - https://fred.stlouisfed.org/series/M2SL
  • Fed purchased assets from nonbank entities which created bank deposits - https://www.federalreserve.gov/econres/notes/feds-notes/understanding-bank-deposit-growth-during-the-covid-19-pandemic-20220603.html
  • U.S. bank deposits to increase greatly from 2020 to 2022 - https://fred.stlouisfed.org/series/DPSACBW027SBOG
  • Money flowed into bank accounts of the most wealthy Americans - https://fred.stlouisfed.org/series/WFRBLT01005
  • Federal Reserve Requirements reduced to 0% in 2020 - https://www.federalreserve.gov/monetarypolicy/reservereq.htm
  • Inflation to increase in 2021 to its highest level since 1980 - https://fred.stlouisfed.org/series/FPCPITOTLZGUSA
  • Fed raised interest rates at the fastest pace in U.S. history to help fight inflation - https://fred.stlouisfed.org/series/fedfunds
  • Caused U.S. banks to incur net unrealized losses - https://fred.stlouisfed.org/series/NUGACBW027SBOG
  • Money supply fell for the first time in U.S. history - https://fred.stlouisfed.org/series/M2SL
  • Depositors reinvested bank deposits into U.S. Treasuries - https://fred.stlouisfed.org/series/FGTSL
  • Bank deposits fell for the first time in U.S. history - https://fred.stlouisfed.org/series/DPSACBW027SBOG

Summary of bank failures

  • https://banks.data.fdic.gov/bankfind-suite/financialreporting?
  • https://www.bankrate.com/banking/signature-bank-collapse/
  • https://www.usatoday.com/story/graphics/2023/03/13/graphics-bank-collapse-silicon-valley/11466073002/
  • https://www.forbes.com/sites/dereksaul/2023/05/01/first-republic-bank-failure-a-timeline-of-what-led-to-the-second-largest-bank-collapse-in-us-history/?sh=2c41f9367b76

Silicon Valley Bank failure

  • https://www.reuters.com/business/finance/what-caused-silicon-valley-banks-failure-2023-03-10/

Disclosures

The opinions provided in this presentation are that of the author and not United Planners. This presentation is meant for educational purposes only. Information presented should not be considered investment advice or a recommendation to take a particular action. Always consult with a financial professional regarding your personal situation before making any financial decisions. Kilmer & Company does not guarantee the accuracy or comprehensiveness of the information provided within this presentation.

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