CA - Don't Be Fooled - Big Banks Have Much More Risk Than Smaller Ones

2024-06-17 11:00:00 ET

Summary

• The common view of late is that smaller banks are more risky than larger banks.
• The facts on the ground suggest that larger banks have as much, if not more, risk than smaller banks.
• You have to engage in due diligence regarding the banks that house your hard-earned money to make sure you're not caught during a banking crisis.

We have written quite extensively over the last several years as to why it's a huge misunderstanding to believe that the largest U.S. banks will be the safer than smaller banks in a systemic crisis scenario. If you look at the data published by various banking regulators, you’ll see that larger banks have much bigger risks than their smaller peers. Yet, for some reason, such data is often ignored by financial media, research agencies, and even independent analysts....

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