via Kitco:
The string of bank failures is not over, warned best-selling author of ‘Rich Dad Poor Dad’ Robert Kiyosaki.
More banks are rumored to fail, Kiyosaki tweeted Thursday. The best-selling author pointed to the lending company loanDepot as the next potential victim in a series of failed regional banks in the U.S.
“More banks about to fail. Rumor is Mortgage giant Loan Depot is on the ropes,” Kiyosaki said. “Regional banks and mortgage companies are falling. Please be careful. I would not believe anything Pres Biden, Fed Chairman Powell or Sec Treasury Yellin say. Think for yourself.”
More banks about to fail. Rumor is Mortgage giant Loan Depot is on the ropes. Regional banks and mortgage companies are falling. Please be careful. I would not believe anything Pres Biden, Fed Chairman Powell or Sec Treasury Yellin say. Think for yourself.
— Robert Kiyosaki (@theRealKiyosaki) June 15, 2023
Federal Reserve Chair Jerome Powell has continued to stress that he views the banking system as sound and resilient. And after holding rates steady for the first time in 15 months on Wednesday, Powell said it was too early to fully assess the impact of tighter credit conditions following the banking turmoil while elaborating on the systemic risk within the system.
“There’s a substantial amount of commercial real estate in the banking system. A large part of it is in smaller banks. It’s well distributed,” Powell told reporters. “We do expect that there’ll be losses, but there’ll be banks that have concentrations and those banks will experience larger losses. So we’re well aware of that. We’re monitoring it carefully. It feels like something that will be around for some time as opposed to something that will suddenly hit and work its way in a systemic risk.”
Bloomberg: A $1.5 Trillion Wall of Debt Is Looming for US Commercial Properties
Almost $1.5 trillion of US commercial real estate debt comes due for repayment before the end of 2025. The big question facing those borrowers is who’s going to lend to them?
“Refinancing risks are front and center” for owners of properties from office buildings to stores and warehouses, Morgan Stanley analysts including James Egan wrote in a note this past week. “The maturity wall here is front-loaded. So are the associated risks.”
Secret Fears Revealed: Regulators’ Jaw-Dropping Concerns Exposed as the Banks Face Their Next Crisis