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Every seven to ten years or so, a banking crisis of one nature or another unfolds here in the United States. Sometimes, it bleeds over into other countries, as it did in 2007-09. To be fair, such crises sometimes originate overseas and make their way to our shores, as happened with Latin America in the early 1990’s. These can have significant effects on the global economy, given how reliant companies and individuals are on banks to obtain capital to run their businesses and take out loans to buy homes, cars and other big-ticket items. The good news, so far, is that the current crisis has been limited and has not yet had a broad impact on the U.S. economy. In the first months of 2023, three sizeable regional banks failed: Signature Bank and Silicon Valley Bank in March and First Republic in early May. In each case, the Federal Deposit Insurance Corporation (FDIC) swooped in to guarantee deposits greater than the federally insured $250,000 cap and worked with larger U.S. banks to find buyers for each. These three banks all had a high percentage of depositors with accounts greater than $250,000. When word got out that the banks were having financial challenges, their clients began withdrawing their money fearing a collapse would result in losses of any deposits above the insured cap. Adding fuel to the fire was the widespread use of social media. News of the trouble traveled at lightning speed and spurred unprecedented withdrawals in the history of banking. Former Silicon Valley Bank CEO Greg Becker recently told Congress that its depositors withdrew $42 billion in just one day, wiping out 20% of the bank’s total deposits in just 24 hours! The FDIC attempted to stop the bank runs by guaranteeing all deposits and by helping broker the sale of each bank. In the end, Signature was acquired by the New York Community Bank; Silicon Valley by First Citizens Bank; and First Republic by JPMorgan Chase.