The ongoing banking crisis is likely to spread further as I compared it to dominoes falling in a bowling alley. The Dutch Central Bank declared losses for the first time since 1931. What is worse, they have projected loss-making years till 2028 and indicated that the central bank might lose its entire equity capital. Deutsche Bank stock fell in Germany, and its credit default swaps (bets that the bank would fail) jumped. Savers in the US are making a beeline to withdraw their deposits from smaller banks due to falling morale. This episode discusses the same in detail.
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