• Former Assistant Treasury Secretary Mike Faulkender warned Monday that more banks may soon fail, the same day federal regulators broker a deal with JPMorgan Chase to save First Republic.
• Faulkender, chief economist of the America First Policy Institute, blamed industry leadership for failing to prepare for a period of rising interests rates.
• Speaking on the “Just the News, No Noise” television show, the former Treasury official warned “there are concerns about how many more banks that are potentially out there, because the notion that these three were the only ones that took on interest rate risk during the pandemic, it certainly is not the case.”
• Earlier this year,  Silicon Valley Bank and Signature Bank also failed.
• “Bank’s management itself is absolutely responsible for this,” Faulkender also said. “We have known for decades, if not centuries, that it is this imbalance between … loans that are long term loans that are funded by short term deposits.”

Tagged: Partner