More Banks Expected to Collapse This Year – Will It Drive Bitcoin Adoption and Propel BTC Price to $100,000? Report

In a recent meeting convened by the Bank Policy Institute (BPI), Treasury Secretary Janet Yellen stated her belief that the banking industry may continue to coalesce into larger entities amid challenging economic conditions. Over two dozen CEOs and utives participated in the dialogue, focusing on the current economic climate and President Biden’s fiscal agenda.

As per the Treasury, Yellen underscored the robustness and stability of the U.S. banking , highlighting its well-capitalized nature with strong liquidity. She further emphasized that the determined measures undertaken by regulators and the Administration in March to safeguard depositors have enhanced public faith in the banking , effectively mitigating financial contagion.

Potential Bank Mergers Amid Industry Concentration Concerns

Despite portraying an image of strength for the US banking , sources cited by CNN have stated that Yellen also broached the topic of potential bank mergers during the meeting. Yellen reportedly conveyed to the utives that further bank mergers might be necessary in the future.

Yellen’s remarks come in the aftermath of the dramatic takeover of First Republic Bank by banking titan JPMorgan, which happened last month following the bank’s collapse and subsequent seizure by the U.S. government. JPMorgan Chase, the country’s largest bank, acquired approximately $173 billion in loans, $30 billion in securities, and $92 billion in both insured and uninsured deposits.

Jamie Dimon, Bitcoin critic and JPMorgan’s CEO, hailed the takeover, citing it as beneficial to the company, shareholders, and the advancement of the company’s wealth strategy. While JPMorgan’s shareholders applauded the acquisition, others expressed apprehension over the growing concentration of power in the sector.

Elizabeth Warren, a Massachusetts Democrat and vocal critic of cryptocurrencies, reportedly voiced concerns about JPMorgan’s expanding size becoming a potential risk to American citizens. She opined that the Federal Government’s assistance to JPMorgan in the wake of a failing bank could put American taxpayers at risk should the banking giant stumble.