There have always been bank failures. Some are poorly managed, some too heavily exposed to a volatile commodity, and some are just nailed by the economy with inadequate reserves to weather the storm.
There are still 4,000+ commercial banks in the United States, but this diagram shows how over the past few decades of consolidation big banks have grown.
Whenever there’s a shock to the economy, some financial institutions (and individuals) are better structured to survive. When the Fed added a huge amount of liquidity to the system to compensate for COVID shutdowns, how did the institutions utilize the funds? Even a high percentage of Lotto winners go bankrupt…
If you are in the Los Angeles area, and have any questions or real estate sales or financing needs, feel free in contacting me
Ron Henderson GRI, SRES, SFR, RECS, CIAS
President/Broker
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – California Association of Mortgage Professionals (2017-2018)
Chairman – OutWest Marketing Meeting (Real Estate Education)
BRE #00905793 NMLS #310358
www.mres.com
ronh@mres.com
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth
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