U.S. Regional Banks are on the Verge of collapsing and it's all planned.

The collapse of Silicon Valley Bank and the US regional banking crisis that followed earlier this year had major economic and regulatory repercussions for lenders across the globe, some of which may be felt for years to come. The collapse of Silicon Valley Bank and Signature Bank in March triggered massive deposit withdrawals and placed renewed focus on lenders' financial health. More recently, the sector was hit by ratings downgrades when S&P last month cut credit ratings and revised its outlook for multiple U.S. banks, following a similar move by Moody's.

In the article hyperlinked above. In its report on August 8th, Moody's also highlighted implications for banks of factors that aren't a direct result of Fed moves, including last year's UK gilt market chaos that pushed long-dated US Treasurys higher and weighed on banks.

With a recession still in the cards, the macroeconomic outlook in general puts pressure on the US banking sector. Funding and profitability remain more difficult than years past, and their large holdings of fixed-rate assets isn't ideal.

"Other non-Fed factors such as heavy Treasury bond issuance and spillovers from monetary policy developments in Japan are also pushing US interest rates higher," Moody's strategists said. "The 10-year Treasury yield has risen both Q3 to date and sequentially in Q2 from Q1, even as the yield curve remains inverted, deepening some banks' ALM risk and profitability pressures."

In what amounted to 27 rating actions on US banks, Moody's pointed to rising costs of capital, deteriorating profits, and climbing risks to assets. However, on August 15th, Another news article came out this time from Fitch. In this article, A Fitch analyst warned that US banking giants, including JPMorgan, could be at risk for a ratings reassessment if the overall industry's score gets hit with another downgrade. In June, the ratings agency lowered its "operating environment" score for US banks to AA- from AA, citing "downward pressure on the US sovereign rating, gaps in the regulatory framework and structural uncertainty around the normalization of monetary policy."

"If we were to move it to A+, then that would recalibrate all our financial measures and would probably translate into negative rating actions,"

Earlier today, September 5th, an investor article dropped titled: 3 Bank Stocks to Sell in September Before They Crash and Burn while you should always take investing articles with a grain of salt its the why that caught my attention.

First Horizon HeadquartersPhoto byCredit Shutterstock

First Horizon (FHN)- As the Federal Reserve swoops in with stabilization measures for banks, whispers of additional regulations are evident. The looming shadow of economic downturns has prompted many banks, including First Horizon, to contemplate cost-cutting and consolidation.

Key Bank HeadquartersPhoto byKeybank

KeyCorp (KEY) is apparently dancing on the edge of financial uncertainty. Luring investors with a hefty dividend yield of roughly 7.4%, wagering on it may appear enticing at first glance. However, delve deeper, and you’ll find that its eye-catching yield signals inherent risks. The bank’s underwhelming financial strength rating of two out of 10 and a meager profitability rank of four out of 10 from Guru Focus raises red flags, hinting at it being a dividend trap. Its recent earnings statement is a cascade of problematic metrics, pointing to turbulent waters ahead.

We are just getting started. This morning, CNN released and article titled: How big banks won the banking crisis in thisarticle it talks about how UBS bought out Credit Suise and is currently up 20% and J.P. Morgan has gained 6% after purchasing First Republic Bank. Why I say that its all planned is because in that article it says.

JPMorgan is a unique institution. It’s the highest-rated G-SIB bank of the eight in the United States. So, number one, it is in a class by itself. Number two, you could say that has been the case since the banking crisis of 1907 when Mr. J.P. Morgan launched the group to meet at Jekyll Island and create the central bank of the United States, the Federal Reserve. In a way, the role of J.P. Morgan classically in America is being fulfilled again today.

The class of the G-SIB banks, especially JPMorgan Chase, is expected to be an unofficial arm for the purpose of financial stability in the United States. And that has been the case for 100 years. We talk all day long about the Federal Reserve and the dual mandate, unemployment and inflation. But no one talks about the unwritten mandate, financial stability. JPMorgan is a premier institution of the American banking system with a role of assisting for financial stability and that hasn’t changed.

In another article posted today September 5, by Reuters titled; US banks hold $3.3 trillion cash amid banking crisis, slowdown worries U.S. lenders are holding onto large piles of cash as insurance against a slowing economy, continuing deposit outflows and looming tougher liquidity rules that could particularly impact mid-sized banks. So if you think that the bank crisis ended in March why are they still talking about it in September? Why are the top 25 banks cashing up so much? Is it to buy out the failing regional banks? I think so. After the failure of Silicon Valley Bank and Signature Bank back in March. Republican Sen. James Lankford of Oklahoma pressed Yellen about how widely the uninsured deposit backstops will apply across the banking industry.

“Will the deposits in every community bank in Oklahoma, regardless of their size, be fully insured now?”

“Will they get the same treatment that SVB just got, or Signature Bank just got?”

Ms. Yellen acknowledged they would not.

I wrote another article talking about Central Bank Digital Currencies if you want to read that article you'll understand why I am saying its all planned out. For CBDC's to work Government has to lower the number of operating banks otherwise there are to many CBDC's to try and figure out which one to convert it from when payment is processed plus a number of other bad things. Check that Hyperlink above for that article.

If you are worried about the banks here is food for thought. The national average interest rate for savings accounts is 0.43% APY, according to the Federal Deposit Insurance Corp. Online banks typically offer savings rates that are higher than the national average, while traditional brick-and-mortar banks generally offer lower rates. For instance SOFI is offering 4.50% APY. But, APY means annual percentage yield. Why would anyone want to set there money into a savings account when you can go to the bank and ask for a (1M Tbill) Thats a One Month Treasury Bill which is paying out 5.4% per month.