29 Apr 2024

US small bank cash reserves plummeted by $258 billion last week below the level considered a constraint, according to ZeroHedge.

This excludes a $126 billion still sitting at the Fed’s emergency lending program that expired in March. It marked the largest decline in bank deposits since April 2022 when $336 billion came out of the banking system. Meanwhile, US regulators have seized Republic First Bank on Friday and agreed to sell it to Fulton Bank, another regional bank with $6 billion in total assets. The FDIC projects the failure will cost the fund around $667 million. Is the US regional bank crisis really over? Source: The Kobeissi Letter, www.zerohedge.com

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