Bank failures have been a rare occurrence in the last few years, and then boom, 2023 hit, and we decided we were overdue. In March, we saw two small- to mid-size banks fail over just a few days – Silicon Valley Bank and Signature Bank. This sent waves through the industry as we witnessed a sharp decline in global bank stock prices and rapid responses by regulators to prevent an even more widespread disaster. Then in late April, First Republic Bank lost nearly 50% of its value after months of plummeting deposits and revenue.
Amid this decline, we’re excited to share that Richard was interviewed by CBS KPIX News to share more insights about what went wrong. At the time, the federal government was gearing up to step in once again. Richard shared, “Hopefully, the federal government and the regulators will say to these banks, ‘Hey, you got to more closely match your investments [depositors’ money in their investment portfolio] with what the depositors might do if they want to take it out.’ Also, they need to have a better mix of how much money is insured versus not insured?”
Richard goes on to share why the failures of Silicon Valley and the First Republic should also be a lesson for the American people, “We’ve gotten relaxed and haven’t given much thought to bank failures, but it’s always a possibility. You saw what happened with Silicon Valley Bank in just a couple of days. You never know; there’s no point in taking that kind of chance.”
If you have questions about the topics covered in this interview or other financial-related questions, please don’t hesitate to get in touch. You can reach us by calling 925.736.6410 or sending an email to Info@APlaceOfPossibility.com.
Interview Timestamps:
0:00 Introduction
0:03 First Republic Bank lost nearly 50% value after deposits and revenue took a nosedive.
0:16 Financial experts say First Republic has loaned far more money than deposits.
0:25 Richard Del Monte of Del Monte Group, in Alamo, California, weighs in on how the Fed should step in.
0:56 Richard also talks about why the problems at Silicon Valley Bank and First Republic Should be a lesson for customers.
1:14 Fears of the bank crisis are not yet over, as we see the stock market decline.
Interested in having Richard or Angela on for an interview? Send us a message by emailing Info@APlaceOfPossibility.com, and we’ll reach out to you to discuss your needs, or feel free to call us at 925.736.6410. And to learn more about Richard, Angela, and their areas of expertise, please visit https://APlaceOfPossibility.com/Presentations/.
“One-size-fits-all” won’t fit you here! The Del Monte Group team understands that everyone’s financial goals are unique. That’s why we always provide customized advice. No matter where you are in life, you can depend on our proven expertise to provide financial planning support for long-term success. Ready to get started? Schedule a meeting with Richard or Angela in our Alamo, CA based office today or we can meet via Zoom! >> You can select a date and time that works for you via our calendar, call us at 925.736.6410, or send an email to Info@APlaceOfPossibility.com. We can’t wait to help you!