Republic First Bank went bankrupt, the first bankruptcy among US banks in 2024. It was recently closed by the Pennsylvania regulator.

There are two important remarks:

- Republic First Bank should not be confused with First Republic Bank, which closed in May 2023 due to the banking crisis of that year. It was already taken over by JPMorgan Chase last year and the scale of the problems there were more serious.

- The bankruptcy of Republic First Bank is not the start of some new “snowball”, at least not yet. According to the Federal Deposit Insurance Corporation, at the end of January it had about 6 billion $ on its total balance sheet and 4 billion $ deposits. This is very small compared to the scale of the $548 billion collapse of Signature Bank, Silicon Valley Bank and First Republic Bank a year ago. Which then became the reason for the growth of the crypto market.

Those who had deposits with Republic Bank will automatically become Fulton Bank clients by decision of the regulator. It is also known that this week the US banking supervisors will propose to oblige banks with assets up to 100 billion $ to issue a sufficient number of long-term debt obligations. To cover capital losses if they fail.

BUT it is important that the problem of the US banking sector has not gone away. And if, for example, the troubled American commercial real estate market collapses, banks in several states will face big problems. The three most problematic are California, New Jersey, and Rhode Island.

Last year's Bank Term Facility Program (BTFP), which ended in January 2024, showed that regulators could pump $162 billion into banks but could not force them to put that money to good use to solve their systemic problems. Banks ended up misusing the benefits of this program by borrowing funds at a low rate and then placing them on overnight deposits with the central bank at a higher rate.

The program has ended, the banks' problems have not been resolved, and banks continue to go bankrupt.

The best advertisement for#BTC👌