Rafi Farber: Another Banking Crisis Takes Shape, Will It Be the Final One?

The next banking crisis looks to be upon us, as New York Community Bancorp teeters on the brink of collapse. Ironically, NYCB was one of the rescuing banks that swooped in during last year’s fiasco and soaked up the assets of the now-failed Signature Bank. Guess that didn’t work out so well now that Signature’s benefactor is failing, too. This comes as an estimated $1.5 trillion in commercial mortgage loans come due this year and next, so that’s comforting.

The developing banking disaster comes as gold and silver diverge wildly in terms of open interest, with the number of gold contracts open at 5-year lows, but silver’s open interest curiously going in the opposite direction. This is something I’ve never, technically speaking, actually seen before.
Over in China, 271 tonnes of physical gold were swiped off the exchange in January. That’s the second-biggest withdrawal ever. The brew appears to be maturing. Into what, we’ll soon find out.

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