When the Federal Reserve began raising interest rates, some economists warned this could have negative ramifications. These warnings are coming to fruition as individuals and even established financial institutions run into problems with keeping all their ducks in a row.
During just this month alone, multiple banks have collapsed and had to be taken over by US federal regulators. This naturally caused panic among the general public and made people think more closely about which banks they entrust with their hard-earned money.
One of the institutions that failed this month is Signature Bank. Though as it turns out, Signature Bank has an interesting history with former President Trump and his family, per the Gateway Pundit.
The Plot Thickens
Signature Bank met its demise after suffering major market value losses in the wake of Silicon Valley Bank also being taken over by regulators.
According to federal officials, the Federal Deposit Insurance Corporation (FDIC) will now ensure that anyone who deposited money into Signature Bank is able to access their funds in a decent time frame. However, shareholders who put money into this institution are essentially out of luck.
Did you know that Signature Bank that just collapsed de-banked Donald Trump?
— suzy (@Suzy_1776) March 13, 2023
As Signature Bank faces this monumental loss, its ties to the Trump family have also resurfaced. Prior to the Capitol riot on January 6, 2021, Signature Bank serviced former President Trump, with his eldest daughter, Ivanka Trump, being on the board of directors for two years, back in 2011.
However, in the wake of the Capitol riot, Signature Bank not only terminated its relationship with Trump, but it also urged the then-president to resign from office altogether.
Given the current condition of Signature Bank, some Americans are suggesting this institution’s failure could be a “Trump curse” or karma for cutting ties with Trump a little over two years ago.
More Dominos Fall?
Given the major collapses that multiple banks are facing these days, many folks with a lot to lose aren’t pleased. Shareholders who have been forced to take losses certainly aren’t happy campers. After all, they don’t have the same FDIC protections as everyday depositors.
This week, three banks failed:
– Silvergate, $SI
– Silicon Valley Bank, $SIVB
– Signature Bank, $SBNYWill there be more?
— unusual_whales (@unusual_whales) March 13, 2023
So far, there has been no indication that the Federal Reserve plans to cease its interest rate hikes, despite these hikes being tied to various banks failing. Therefore, it remains to be seen what the future for other financial institutions looks like now.
One chilling factor to take into account is that the collapse of one bank very often impacts the fate of other banks.
Are you surprised to learn about the previous ties that Signature Bank had with Trump and his family going back years? Do you believe things are going to get better or worse for banks in America? Feel free to weigh in using the comments section.
This article appeared in New Vision News and has been published here with permission.
