Another bank subsidy America should kill off
THE SLOW-BURNING crisis in America’s small- and medium-sized banks has entered its next phase. Nearly a year on from the failure of Silicon Valley Bank (SVB), New York Community Bank has lost about half of its value since it announced on January 31st that it was setting aside $552m to cover troubled loans secured against commercial real estate. Last spring the bank was a saviour of sorts, buying $38bn of assets from Signature Bank, which failed around the same time as SVB. Now it is the first example of a new set of problems facing the industry.
