A number of financial industry experts criticized that the Fed's interest rate hikes were too fast and too aggressive, which is the chief culprit of the banking crisis, and predicted that there may be more regional bank failures.

(AFP)

[Compile Lu Yongshan/Comprehensive Report] Although the U.S. financial system is facing the turmoil of the recent collapse of three banks including Silicon Valley Bank (SVB), the Fed still raised interest rates by one yard. Since March last year, it has raised interest rates nine times. ．

Between 75% and 5%; Many financial industry experts criticized that the Fed's interest rate hike was too fast and too violent, which was the chief culprit of this banking crisis, and predicted that there may be more regional bank failures.

Stanhpe Capital Chief Executive Daniel Pinto said the Fed has raised interest rates from zero to four over the past year.

Seventy-five percent, and possibly even five percent, is irresponsible and unnecessary; "I can say that the Fed is to blame" and this banking crisis will have huge consequences, including the collapse of the U.S. banking industry. Integrate.

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Luke Ellis, chief executive of Man Group, the world's largest listed hedge fund, pointed out that the banking crisis is not over yet, and there will be a large number of bank failures in the next 12 to 24 months. The question is which banks will be taken over, merged, or even disappear automatically.

Former Lehman Brothers Vice President Lawrence McDonald said U.S. regional banks are expected to lose hundreds of billions of dollars as more money flows out of regional banks to larger banks and then to government bonds, existing deposit guarantees. The system is not sufficient, and the US government also needs to increase the amount of deposit guarantees.

Macdonald criticized Fed Chairman Powell for not being aware of the risks faced by regional banks in the cycle of continuous interest rate hikes. The Fed’s behavior is tantamount to "smoking in a dynamite box." In the end, the government will bear the burden of bank deposits risk; and said that if the Fed does not take appropriate policies to address the structural problems of the banking industry, the banking crisis may swallow another 50 regional banks in the United States.

"USA Today" reported that a new study found that 186 banks in the United States are at risk of failure as the Fed continues to raise interest rates. Even if only half of depositors withdraw their deposits, these banks are likely to fail.

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