The Ongoing Risks and Lessons from Bank Failures.
The US banking sector is still facing risks despite regulators and bank executives saying they don't foresee a repeat of the 2008 financial crisis. Banks face huge unrealized losses on long-term investments, the threat of more bank runs, and looming defaults in the commercial real estate market. Midsize and regional banks are particularly exposed to a downturn in the commercial real estate market. Existing rules also make it harder for investors to identify bank risks, and banks have often found ways to reclassify losses. President Biden is pushing lawmakers to toughen bank regulations to reduce the chance of future bank failures.