Here is one of them.

https://www.google.com/search?q=two+major+banks+in+america+failed

Not good news.

As far as I can remember, most overseas banks aren't required to have the cash reserves that are required of Australia's so-called 'four pillars'. I'm not talking about the billions themselves as obviously some American banks are a lot larger than ours, I am talking about the percentage of deposits that are required to be held in trust at the Reserve Bank.

Whilst no bank is completely immune from a collapse, it can happen to a bank of any size, regardless of its previous successes. The thing that disappoints me about any company collapse is the fact that a board of directors doesn't ring the alarm bell months before a collapse happens. A collapse of a large company doesn't happen instantaneously, it happens over a long period of time, yet no-one seems to notice the trend towards insolvency.

What we need to be more concerned about in Australia is the 400+ public companies that have collapsed in the last ten months. This includes construction firms and other large corporate entities. A lot of people, and companies, are being left out of pocket due to unfinished work and building construction laws that are not powerful enough to protect customers. Public companies over a certain size should be required to report profit and loss statements more frequently and have them audited independently before submission so problems like this do not occur as often, or at all.

Aside from the home builders, the others that get dragged down often catastrophically are the sub contractors.

According to a U.S friend of mine the account holders are insured for upto $250,000 and they can get 50 percent of their deposit straight away and the rest over the next 6 months.

Let's hope QBE didn't reinsure this liability like they do with a lot of overseas customers otherwise the hit will be felt locally.

You would hope the insurance company has the money because there would be at least a million deposits .

Bank no 2

https://www.cnbc.com/2023/03/12/regulators-close-new-yorks-signature-bank-citing-systemic-risk.html

At least our banks don't have names like Billy Bob and Fanny May!!!!

Our big banks may be useless sods but at least are backed by legislation to be pretty safe.

Lets put all our money in a Trump bank.................not.

Fred.

The radio club I am in got caught up in the "Banksia" exercise as did a couple of members as it actually started in this area and one of the persons involved in setting up would roll in his grave, if he had known what had happened.

At least in dribs & drabs after the court case we got the money back. The American's did punish us for a while with a couple of collapse's as they failed mainly through introversion, to realise, that here an in the UK, one could not legally add a couple of naughts to the financial statements to make them look good.

They forgot to add enforceable lines into their taxation laws, which basically say that the prospectus, or tax return must be a fair & reasonable appraisal of the companies financial position. So adding a couple of zero's will bring you undone.

Hey Fred I'm thinking The Don will be rubbing his hands together now lol .

Fred, those two banks (it was Freddie Mac and Fannie Mae) are wholesale banks, lending money to the retail banks, who in turn lend to the punters. In the US, the whole monetary system, including the Federal Reserve, is privately owned. Back around 2008 with the so-called GFC hit, it was those two banks that almost went belly-up and required government intervention to keep them going. If they collapsed the pundits thought it would wipe out the US economy.

Here at home, there is no equivalent of the US's Chapter 11 bankruptcy protection so the four big banks here have to be heavily capitalised. We need that stability because the four big banks own the whole electronic payments system, in conjunction with Coles and Woolworths - all six are shareholders in the EFTPOS system.

In short, if they went bust, we all would.

QUOTE: Australia's so-called 'four pillars'

Here's another American bank that ran into trouble last week and decided to close

https://en.wikipedia.org/wiki/Silvergate_Bank

Geesus so that's 4 banks!
Oops now it's 5. I know two of them are heavily invested in crypto currency.

Crypto was always a scam and should never have been allowed.

Just another pyramid scheme, it had to unravel eventually. Anyone who invested in it long term was a fool.