Republic First’s Failure May Signal More Bank Failures to Come
Republic First Bank became the first bank failure of the year on April 26 when it was shut down by Pennsylvania’s bank regulator and the Federal Deposit Insurance Corp. seized its assets.
Fulton Bank has agreed to buy out Republic First’s estimated $6 billion in assets, but one expert on financial regulatory reform says the collapse could be a sign of more failures to come soon.
This bank failure indicates that additional failures will occur and will range between smaller community banks and larger banks. The cause is twofold: higher-cost deposits exceeding the yield on low-yield treasury securities and similar investments held by banks, and the deteriorating commercial real estate market and commercial real estate loans.
—Joseph Lynyak, banking attorney at law firm Dorsey & Whitney
Dominoes: Three of the four largest bank collapses in United States history occurred last year when First Republic Bank ($229 billion), Silicon Valley Bank ($209 billion) and Signature Bank ($118 billion) went under.
U.S. Treasury Secretary Janet Yellen tried to calm jitters by assuring Americans that the government would step in to protect banks that were too big to fail. This prompted people to withdraw $120 billion from small banks and deposit $67 billion into big banks like JPMorgan Chase and Wells Fargo.
So while Fulton Bank is set to double its presence in the Philadelphia, Pennsylvania, market by purchasing Republic First Bank, it is likely that small to mid-sized banks will continue to fail as U.S. banking is centralized in the hands of a few big institutions. Rising interest rates, losses on commercial real estate and heightened regulatory scrutiny are slowly centralizing all credit into the hands of a few powerful players.
Orchestrated crisis: The fifth plank of Karl Marx’s Communist Manifesto is the “centralization of credit in the hands of the state, by means of a national bank with state capital and an exclusive monopoly.” Before Communists can accomplish this goal, they must destroy local banking.
To this end, the current banking crisis has been a boon to radical leftist officials who prefer to work with a few big financial institutions.
Coming collapse: The late Herbert W. Armstrong warned that communism would strip America of its blessings—the greatest blessings ever conferred on any people—because the American people have turned away from God’s laws.
Mr. Armstrong specifically warned that communism would pervert America’s morals, sabotage its educational system, wreck its social structure, destroy its spiritual life, weaken its military, and sap its economic strength.
Today, we see an orchestrated effort to weaken America’s economy to the point where the government can nationalize it.
Learn more: Read the chapters “Our Financial 9/11 Was Prophesied!” and “The Communist Infiltration of America Was Prophesied” in our booklet He Was Right.
