3 Failed Banks This Year Were Bigger Than 25 That Crumbled in 2008
U.S. bank failures in each year, sized by total assets and adjusted for inflation
$550
billion
500
$110 billion
$94 billion
Signature Bank
24 other banks
450
400
$432 billion
Washington Mutual Bank
350
$209 billion
Silicon Valley Bank
300
250
200
150
$213 billion
100
First Republic Bank
50
’01
’03
’05
’07
’09
’11
’13
’15
’17
’19
’21
’23
U.S. bank failures in each year, sized by total assets and
adjusted for inflation
$550
billion
500
$94 billion
$110 billion
24 other banks
Signature Bank
450
400
$432 billion
Washington Mutual
Bank
350
$209 billion
Silicon Valley Bank
300
250
200
150
$213 billion
100
First Republic Bank
50
’01
’02
’03
’04
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
’15
’16
’17
’18
’19
’20
’21
’22
’23
Government regulators seized and sold off First Republic Bank on Monday, making it the third bank to fail this year after Silicon Valley Bank and Signature Bank collapsed in March.
The three banks held a total of $532 billion in assets. That’s more than the $526 billion, when adjusted for inflation, held by the 25 banks that collapsed in 2008 at the height of the global financial crisis.
The implosion that year of Washington Mutual, as well as the investment banks Lehman Brothers and Bear Stearns, was followed by failures throughout the banking system. From 2008 to 2015, more than 500 federally insured banks failed.
Most were small or midsize regional banks and were absorbed into other institutions, a common outcome for banks that have been put under government control. Washington Mutual, which was heavily involved in risky mortgages and became the largest bank to fail in U.S. history, was sold to JPMorgan Chase.
In recent years, fewer banks have gone under, thanks in part to stricter regulations that were put in place in the wake of the financial crisis. Before Silicon Valley Bank, the last bank to fail did so in late 2020, as the coronavirus was ravaging the country.
The collapses of Silicon Valley and Signature Bank in March led to fears of fallout for the broader industry. Higher interest rates have eroded the value of assets on banks’ balance sheets, stressing the financial system and making it harder for banks to pay back depositors if they decided to withdraw their money.
Biggest U.S. banks by total assets
1.
JPMorgan Chase
$3.20
trillion
2.
Bank of America
2.42
3.
Citibank
1.77
4.
Wells Fargo
1.72
5.
U.S. Bank
$585
billion
6.
PNC Bank
552
7.
Truist Bank
546
8.
Goldman Sachs
487
9.
Capital One
453
10.
TD Bank
387
11.
Bank of New York Mellon
325
12.
State Street Bank and Trust
298
13.
Citizens Bank
226
14.
First Republic Bank
213
15.
Morgan Stanley Private Bank
210
16.
Silicon Valley Bank
209
17.
Fifth Third Bank
206
18.
Morgan Stanley Bank
201
19.
M&T Bank
200
20.
KeyBank
188
21.
Huntington Bank
182
22.
Ally Bank
182
23.
BMO Harris Bank
177
24.
HSBC Bank
162
25.
American Express
155
26.
Northern Trust
155
27.
Regions Bank
154
28.
Discover Bank
129
29.
Signature Bank
110
30.
First Citizens Bank
109
JPMorgan Chase
1.
$3.20
trillion
Bank of America
2.
2.42
Citibank
3.
1.77
Wells Fargo
4.
1.72
U.S. Bank
5.
$585
billion
PNC Bank
6.
552
Truist Bank
7.
546
Biggest U.S.
banks by
total assets
Goldman Sachs
8.
487
Capital One
9.
453
TD Bank
10.
387
Bank of New York Mellon
11.
325
State Street Bank and Trust
12.
298
Citizens Bank
13.
226
First Republic Bank
14.
213
Morgan Stanley Private Bank
15.
210
16.
Silicon Valley Bank
209
Fifth Third Bank
17.
206
Morgan Stanley Bank
18.
201
M&T Bank
19.
200
KeyBank
20.
188
Huntington Bank
21.
182
Ally Bank
22.
182
BMO Harris Bank
23.
177
HSBC Bank
24.
162
American Express
25.
155
Northern Trust
26.
155
Regions Bank
27.
154
Discover Bank
28.
129
Signature Bank
29.
110
First Citizens Bank
30.
109
First Republic received a temporary $30 billion infusion from the nation’s biggest banks in March as a way to restore clients’ confidence. But customers withdrew a staggering $102 billion in customer deposits over the first quarter of this year, according to the bank’s quarterly earnings report filed on Monday.
By the close of trading on Friday, the company’s stock price had dropped more than 75 percent last week.
Similar to Silicon Valley Bank, First Republic had many start-up industry clients, and many of its accounts held more than $250,000, the amount covered by federal insurance.
Top 50 banks by share of deposits that are not federally insured
Excludes banking giants considered systemically important
Greater share of deposits uninsured
25%
50
75
100
Silicon Valley
94% of $161 billion total deposits
Signature
90% of $89 billion
Bar heights are proportional to each bank’s total domestic deposits
First Republic
68% of $176 billion
Greater share of deposits uninsured
25%
50
75
100
Silicon Valley
94% of $161 billion total deposits
Signature
90% of $89 billion
Bar heights are proportional to each bank’s total domestic deposits
First Republic
68% of $176 billion
The regulations put in place for the nation’s biggest banks after the financial crisis include stringent capital requirements, which means they must have a certain amount of reserves for moments of crisis, as well as stipulations about how diversified their businesses must be.
But midsize banks like First Republic, Silicon Valley and Signature do not have the same regulatory oversight. In 2018, President Donald J. Trump signed a law that reduced scrutiny for many regional banks. Silicon Valley Bank’s chief executive, Greg Becker, was a strong supporter of the move. Among other things, the law changed the requirements for the amount of cash that these banks had to keep on their balance sheets to protect against shocks.
In a review of the Fed’s oversight of Silicon Valley Bank released on Friday, Michael S. Barr, the central bank’s vice chair for supervision, said the Fed would “re-evaluate” its rules for banks that were similar in size to Silicon Valley Bank.
Mr. Barr called the bank’s failure a “textbook case of mismanagement.” But he faulted Fed supervisors, too, for not understanding the extent of the bank’s vulnerabilities, and for failing to take decisive action when they did identify problems.
He also noted the real threat of contagion from Silicon Valley Bank. “A firm’s distress may have systemic consequences through contagion — where concerns about one firm spread to other firms — even if the firm is not extremely large, highly connected to other financial counterparties, or involved in critical financial services,” he wrote.