Is the U.S. About to Experience Another Bank Crisis?

Is the U.S. about to experience another banking crisis?

Shares in banks, and particularly regional banks, imploded yesterday. At one point the regional bank index (KRE) was down 7%.

The issues pertain to two recent bankruptcies in the subprime auto-lending and auto parts manufacturing industries: TriColor Holdings and FirstBrands.

About a month ago, a large subprime auto lender, TriColor Holdings, filed for bankruptcy. At the time of bankruptcy, the firm had assets and liabilities somewhere between $1 billion and $10 billion. Obviously, this was not a massive company, but the details of the situation are concerning.

Subprime auto lending is some…

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