US banks prepare for imminent changes
In recent weeks, an unprecedented shift has unfolded in the metals market, coinciding with noteworthy events in the banking sector that demand our attention.
From the suspension of stock trading for major banks to the introduction of new cryptocurrencies by BRICS nations seeking to bypass the dominance of the US dollar, the financial landscape is undergoing rapid transformations.
Disclaimer: NYCB-No Financial Advice Adding to the intricacy, the Federal Reserve's dovish stance has propelled precious metals to record highs, indicating a crucial moment for those considering investments in precious metals.
Amid these changes, three significant actions by troubled U.S. banks have surfaced as they brace for the conclusion of the Bank Term Funding Program (BTFP), each deserving close scrutiny for anyone involved in financial markets:
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Stringent Lending Standards: A recent survey exposed that since March 2022, when the Fed initiated rate hikes, 50% of loan or financial product applicants have faced rejections. This tightening mirrors the early days of the Great Recession, disproportionately impacting individuals with lower credit scores.
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Nationwide Branch Closures: In an effort to reduce costs, banks have been rapidly closing branches. Recent filings indicate plans to close 23 branches in just one week, signaling deeper challenges within the sector.
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Massive Job Layoffs: In the previous year, the world's largest banks terminated over 60,000 employees, marking the highest figure since the 2007-2008 financial crisis. With Citigroup alone announcing a reduction of 20,000 employees, the trend of banking layoffs is accelerating in 2024.
These developments emphasize the importance of staying informed and proactive in managing financial affairs. As the Federal Reserve announces the conclusion of the BTFP, a crucial support mechanism for many U.S. banks, March 11 becomes a pivotal date that could significantly impact the banking and financial landscape.