January 23, 2025
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CNBC Marathon examines the factors that cause banks to fail and the risks this poses to the broader U.S. economy.
Shares of Citi’s stock saw more than a 30% drop over the last 5 years. In 2021, CEO Jane Fraser announced a bold shift in the company strategy, exiting 14 consumer markets outside of the U.S. and instead doubling down on wealth management. It’s a tactical move that several other major banks like Bank of America and Wells Fargo have adopted in recent years.
Across the U.S., hundreds of small and regional banks are feeling stressed and may be at risk of failure. Of about 4,000 U.S. banks analyzed by the Klaros Group, 282 banks face stress from commercial real estate exposure and potential losses tied to higher interest rates. Most banks facing risks are categorized as small, or community, banks.
The collapse of Silicon Valley Bank, Signature Bank and Credit Suisse were a harsh reminder of how quickly a trusted institution could fail, putting billions of dollars at risk. In fact, over 550 banks have collapsed since 2001, according to the FDIC. What caused these failures, and what implications do they have on the U.S. economy?
Chapters:
Produced and Edited by: Juhohn Lee, Andrea Miller, Nora Rappaport
Animation: Christina Locopo, Jason Reginato
Reporting by: Hugh Son
Supervising Producer: Lindsey Jacobson
Additional Footage: Getty Images
Additional Editing: Emily Rabbideau
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Why Some Of America’s Banks Are At Risk Of Failing | CNBC Marathon
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