The American financial industry has slipped into a crisis not seen since the global financial crisis of 2008. The Silicon Valley Bank (SVB) collapsed spectacularly earlier this month. The failure of the Signature Bank followed the collapse of SVB.
Both banks are now under the Federal Deposit Insurance Corporation (FDIC) control. With the banking system battered by bank failures, avoiding the First Interstate BancSystem, Inc. (FIBK – Get Rating) could be wise. Throughout this article, I have discussed the reasons I am bearish on this regional bank stock.
The bank failures have rattled the financial industry. SVB was the 16th largest bank in the United States at the end of 2022. Its collapse could be attributed to a large percentage of uninsured deposits and a substantial proportion of deposits invested in hold-to-maturity deposits.
EY-Parthenon’s chief economist Greg Daco said, “The risk in terms of the spark from SVB is real. Once there is stress in a particular set of institutions, then those institutions and those that have similarities will tend to be more…
Continue reading at STOCKNEWS.com