Bidenomics tips more stressed U.S. banks into danger zone as economy slows

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With inflation, high-interest rates and slowing economic growth already stressing Americans heading into the 2024 election, another reason to worry about the Biden economy has cropped up: distressed banks in danger of failing.

 

Last month U.S. regulators seized a bank known as Republic First Bancorp and agreed to sell it to Fulton Bank.

The bank reportedly had a total of $6 billion in total assets and $4 billion in total deposits, according to Yahoo Finance. The Federal Deposit Insurance Corp estimated the cost of the failure to its fund would be about $667 million. 

Republic Bank has 32 branches in New Jersey, Pennsylvania and New York that are reopening as branches of Fulton Bank by this Monday.

 

"With this transaction, we are excited to double our presence across the region," said Fulton Chairman and CEO Curt Myers in a statement.

According to recent reports, hundreds of banks face the potential of failing just like Republic First Bancorp.

Consulting firm Klaros Group analyzed roughly 4,000 U.S. banks and found that the banks face a threat of losses due to "secular changes in social patterns accelerated by the COVID pandemic (such as work-from-home, which has materially impacted demand for office space) and to the impacts of higher interest rates and related inflation."