What banks are in financial trouble?
Recently, a report posted on the Social Science Research Network found that 186 banks in the United States are at risk of failure or collapse due to rising interest rates and a high proportion of uninsured deposits.
Recently, a report posted on the Social Science Research Network found that 186 banks in the United States are at risk of failure or collapse due to rising interest rates and a high proportion of uninsured deposits.
Global Financial Stability Notes
Silicon Valley Bank (SVB), the 16th largest bank in the country, collapsed in a matter of days, followed by Signature Bank (SBNY) and First Republic Bank (FRB), marking the largest bank failures after Washington Mutual Bank in 2008.
Bank Name | City | State |
---|---|---|
Heartland Tri-State Bank | Elkhart | KS |
First Republic Bank | San Francisco | CA |
Signature Bank | New York | NY |
Silicon Valley Bank | Santa Clara | CA |
- First Republic Bank (FRC) . Above average liquidity risk and high capital risk.
- Huntington Bancshares (HBAN) . Above average capital risk.
- KeyCorp (KEY) . Above average capital risk.
- Comerica (CMA) . ...
- Truist Financial (TFC) . ...
- Cullen/Frost Bankers (CFR) . ...
- Zions Bancorporation (ZION) .
2024 in Brief
There are no bank failures in 2024. See detailed descriptions below.
Fitch Affirms Capital One at 'A-'/'F1'; Outlook Stable. Fitch Ratings - New York - 21 Feb 2024: Fitch Ratings has affirmed Capital One Financial Corporation's (COF) Long- and Short-Term Issuer Default Ratings (IDRs) at 'A-' and 'F1', respectively, and has affirmed the bank's Viability Rating (VR) at 'a-'.
JPMorgan Chase, the financial institution that owns Chase Bank, topped our experts' list because it's designated as the world's most systemically important bank on the 2023 G-SIB list. This designation means it has the highest loss absorbency requirements of any bank, providing more protection against financial crisis.
1. JPMorgan Chase. JPMorgan Chase, or Chase Bank, is the biggest bank in America with nearly $3.4 trillion in assets. It boasts a vast network of over 4,800 physical branches and more than 15,000 ATMs.
Your money is safe at Capital One
Capital One, N.A., is a member of the Federal Deposit Insurance Corporation (FDIC), an independent federal agency. The FDIC insures balances up to $250,000 held in various types of consumer and business deposit accounts.
Should I pull my money out of the bank?
Your money is safe in a bank with FDIC insurance
A bank account is typically the safest place for your cash, since banks can be insured by the Federal Deposit Insurance Corp. up to $250,000 per depositor, per insured institution, per ownership category.
US eases restrictions on Wells Fargo after years of strict oversight following scandal. NEW YORK (AP) — The Biden administration eased some of the restrictions on banking giant Wells Fargo, saying the bank has sufficiently fixed its toxic culture after years of scandals.
Failed banks | Date closed |
---|---|
Heartland Tri-State Bank, Elkhart, Kansas | 07/28/2023 |
First Republic Bank, San Francisco | 05/01/2023 |
Signature Bank, New York | 03/12/2023 |
Silicon Valley Bank, Santa Clara, Calif. | 03/10/2023 |
Wells Fargo is the worst bank overall, with a high percentage of unresolved complaints and loss of Better Business Bureau accreditation. Citibank has a string of high-profile cases involving operational chaos and regulatory fines.
- CITIBANK. ...
- WELLS FARGO. ...
- CAPITAL ONE. ...
- M&T BANK CORPORATION. ...
- AGRIBANK. ...
- COBANK. ...
- AGFIRST. ...
- FARM CREDIT BANK OF TEXAS. Farm Credit Bank of Texas is the fourth member of the U.S. Farm Credit System, providing wholesale lending and business services in states like Texas, Alabama, and New Mexico.
Wells Fargo (WFC)
Nevertheless, it finds itself as one of the least likely financial institutions to fail. Interestingly, since the Jan. opener, WFC gave up more than 13% of equity value. That makes WFC slip in somewhere between JPMorgan Chase and Bank of America.
Overall, Bank of America appears to be in a relatively healthy financial position and is not currently in imminent danger of collapse.
Still, the FDIC itself doesn't have unlimited money. If enough banks flounder at once, it could deplete the fund that backstops deposits. However, experts say even in that event, bank patrons shouldn't worry about losing their FDIC-insured money.
A run on deposits (leaving the bank without the cash to pay customer withdrawals). Too many bad loans/assets that fall sharply in value (eroding the bank's capital reserves). A mismatch between what the bank can earn on its assets (primarily loans) and what it has to pay on its liabilities (primarily deposits).
On February 19, Capital One announced it would acquire Discover in an all-stock transaction worth $35.3 billion. Both companies are among the largest credit card issuers in the country while Capital One is the ninth-largest bank in the United States.
What bank is Capital One merging with?
In February 2024, Capital One agreed to buy Discover Financial Services for more than $35 billion, in a deal that would unite two of the largest U.S. credit-card companies. The proposed acquisition comes at a time when consumers are shifting more of their payments from cash to credit cards.
Capital One, N.A. is an FDIC member. Our FDIC certificate numbers are 33954 and 4297. All deposits at this Capital One banking institution are FDIC-insured to at least $250,000 per depositor, per ownership category.
JPMorgan Chase is the top largest bank in the US, with a balance sheet total of $3.31 trillion.
“J.P. Morgan Private Bank is the more elite program serving ultra-high-net-worth individuals,” Naghibi said. “It offers comprehensive services in savings, checking and retirement account management. But, more than anything, it gives clients access to their bank and team with a concierge feel.”
Chase and Wells Fargo are well known brands, and they have the most branches in the U.S. They're also the most popular bank in 30 percent of the 50 states. Chase now has the most locations in the U.S. and the most branches in seven states.
References
- https://quickbooks.intuit.com/r/banking/how-to-tell-if-a-bank-is-healthy/
- https://www.americanbullion.com/can-banks-seize-your-money/
- https://www.nerdwallet.com/best/banking/best-national-banks
- https://www.lifestoryresearch.com/2022-americas-most-trusted-retail-bank
- https://en.as.com/latest_news/bank-of-america-branch-closures-scheduled-for-early-2024-n/
- https://www.noradarealestate.com/blog/is-bank-of-america-in-trouble/
- https://www.forbes.com/advisor/banking/bank-of-america-review/
- https://coincodex.com/article/33788/worst-banks-in-america/
- https://finance.yahoo.com/news/7-banks-dump-now-bust-234758659.html
- https://www.bankrate.com/banking/reviews/bank-of-america/
- https://www.thepennyhoarder.com/bank-accounts/wells-fargo-review/
- https://www.marketwatch.com/guides/banking/list-of-failed-banks/
- https://www.ifac.org/knowledge-gateway/preparing-future-ready-professionals/discussion/eight-steps-establish-firm-risk-management-program
- https://www.investopedia.com/articles/managing-wealth/050716/10-checking-accounts-ultra-rich-use.asp
- https://www.noradarealestate.com/blog/which-banks-are-in-danger-of-failing/
- https://www.experian.com/blogs/ask-experian/what-to-do-if-bank-closes-your-account/
- https://www.forbes.com/advisor/banking/list-of-failed-banks/
- https://time.com/personal-finance/article/chase-vs-bank-of-america/
- https://www.usnews.com/banking/articles/how-many-bank-accounts-should-i-have
- https://investorplace.com/2023/03/7-bank-stocks-that-are-the-least-likely-to-fail/
- https://corporatefinanceinstitute.com/resources/career-map/sell-side/risk-management/major-risks-for-banks/
- https://www.wellsfargo.com/financial-education/basic-finances/manage-money/options/fdic/
- https://investor.bankofamerica.com/corporate-governance/governance-library/code-of-conduct
- https://www.fdic.gov/analysis/cfr/2014/wp2014/2014-04.pdf
- https://www.usnews.com/banking/articles/credit-union-vs-a-bank
- https://www.forbes.com/advisor/banking/most-popular-banks-by-state/
- https://www.cnn.com/cnn-underscored/money/largest-banks-in-the-us
- https://www.cnbc.com/2024/04/16/regional-bank-failures-may-be-ahead-fmr-fdic-chair-sheila-bair-warns.html
- https://www.nerdwallet.com/reviews/banking/chase
- https://www.aba.com/about-us/our-story/aba-history/1782-1799
- https://blog.tsibinc.com/the-3-basic-categories-of-risk
- https://financeunlocked.com/videos/operational-risk-management
- https://www.businessinsider.com/personal-finance/best-banks
- https://www.simplilearn.com/common-project-risks-article
- https://www.marketwatch.com/guides/banking/largest-banks-in-the-us/
- https://gfmag.com/banking/worlds-safest-banks-2023-global-100/
- https://www.gao.gov/high-risk-list
- https://www.globalpolicyjournal.com/blog/24/03/2023/three-banks-have-now-collapsed-progressive-economist-explains-why
- https://fraser.stlouisfed.org/files/docs/historical/frbchi/workingpapers/frbchi_workingpaper_1986-01b.pdf
- https://www.cnet.com/personal-finance/banking/advice/what-happens-to-my-money-if-my-bank-closes-down/
- https://fortune.com/recommends/banking/capital-one-to-acquire-discover/
- https://www.bankrate.com/banking/most-popular-bank-in-each-state/
- https://www.merrilledge.com/article/how-much-do-you-really-need-to-save-for-retirement
- https://www.fdic.gov/resources/resolutions/bank-failures/in-brief/bfb2024.html
- https://www.bankrate.com/banking/what-happens-when-a-bank-fails/
- https://en.as.com/latest_news/wells-fargo-branches-across-the-us-that-could-close-in-2024-n/
- https://www.linkedin.com/pulse/10-worst-banks-america-karen-e-peyton-
- https://ocro.stanford.edu/enterprise-risk-management-erm/key-definitions/definition-risk-owner
- https://www.shippingsolutions.com/blog/supply-chain-operational-risks
- https://www.investopedia.com/terms/e/eventrisk.asp
- https://downforeveryoneorjustme.com/bank-of-america
- https://corporatefinanceinstitute.com/resources/career-map/sell-side/risk-management/risk/
- https://finance.yahoo.com/news/bank-america-corp-bac-company-051326625.html
- https://www.joinleland.com/library/a/top-ten-investment-banks
- https://www.forbes.com/advisor/banking/largest-banks-in-the-us/
- https://www.capitalone.com/bank/disclosures/online-banking/faqs/
- https://www.noradarealestate.com/blog/list-of-failed-banks/
- https://www.gbnews.com/money/us/bank-branch-closures-us-list
- https://www.investopedia.com/what-happens-if-my-bank-fails-7378029
- https://www.thestreet.com/personal-finance/banks-most-at-risk-morningstar
- https://www.bajajfinservmarkets.in/fixed-deposit/safest-bank-in-india.html
- https://www.occ.treas.gov/news-issuances/news-releases/1996/nr-occ-1996-2a.pdf
- https://www.investopedia.com/deposit-insurance-keeps-bank-accounts-safe-even-if-its-funding-runs-dry-7496229
- https://www.bankwithunited.com/about-united/most-trustworthy-bank.html
- https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/
- https://www.nerdwallet.com/article/banking/is-my-money-safe-in-a-bank
- https://www.investopedia.com/ask/answers/062415/what-are-major-categories-financial-risk-company.asp
- https://en.wikipedia.org/wiki/List_of_largest_bank_failures_in_the_United_States
- https://finance.yahoo.com/news/7-bank-stocks-least-likely-192442317.html
- https://www.macroaxis.com/invest/ratio/COF/Probability-Of-Bankruptcy
- https://smartasset.com/checking-account/the-top-ten-banks-by-assets-held
- https://www.npr.org/2023/07/11/1187060652/bank-of-america-250-million-illegal-fees-fake-accounts-fines
- https://apnews.com/article/wells-fargo-comptroller-of-currency-sales-practices-scandal-d3f41b3dbab4de74462fd3fe2585d50e
- https://hr.fullerton.edu/risk-management/information-and-document-requests/information-management/essential-techniques-of-risk-management.php
- https://www.piranirisk.com/blog/5-tools-for-identifying-risks
- https://www.capitalone.com/bank/fdic/
- https://www.consumerfinance.gov/about-us/newsroom/bank-of-america-for-illegally-charging-junk-fees-withholding-credit-card-rewards-opening-fake-accounts/
- https://insight.kellogg.northwestern.edu/article/capital-one-discover-deal
- https://www.bankrate.com/banking/list-of-failed-banks/
- https://www.forbes.com/advisor/banking/chase-bank-review/
- https://www.marketwatch.com/guides/banking/bank-of-america-review/
- https://www.investopedia.com/articles/markets-economy/082316/3-reasons-banks-can-freeze-your-account.asp
- https://www.simplilearn.com/financial-risk-and-types-rar131-article
- https://finance.yahoo.com/news/15-biggest-bank-failures-us-184142673.html
- https://www.fitchratings.com/research/banks/fitch-affirms-capital-one-at-a-f1-outlook-stable-21-02-2024
- https://money.usnews.com/money/personal-finance/family-finance/articles/how-you-can-protect-your-money-in-the-wake-of-banking-collapses
- https://www.quora.com/Is-it-legal-to-store-large-amounts-of-cash-at-home-in-the-United-States
- https://www.crnrstone.com/whats-going-on-in-banking-2024
- https://www.creditdonkey.com/safest-banks-in-the-us.html
- https://siepr.stanford.edu/publications/policy-brief/fragile-why-more-us-banks-are-risk-run
- https://www.forbes.com/advisor/banking/safest-banks-in-the-us/
- https://finance.yahoo.com/news/us-banks-trust-hard-earned-154119069.html
- https://www.emarketer.com/insights/largest-banks-us-list/
- https://atg.benefits.ml.bac-assets.com/CDN/ATGDocs/Production/contentRepository/BOL0059152/700957_BAC_Term_Guide_2.pdf
- https://www.fda.gov/about-fda/cdrh-transparency/overview-medical-device-classification-and-reclassification
- https://link.springer.com/chapter/10.1007/978-1-137-44217-8_2
- https://www.imf.org/en/Publications/global-financial-stability-notes/Issues/2024/03/04/The-US-Banking-Sector-since-the-March-2023-Turmoil-Navigating-the-Aftermath-544809
- https://www.preferredbank.com/personal/products-and-services/expanded-insurance-protection
- https://www.ssctech.com/blog/why-do-banks-fail-and-whats-next-2023-lessons-and-predictions
- https://finance.yahoo.com/news/4-most-popular-banks-millionaires-150054420.html