Highlights from the April 26, 2023, HBK Manufacturing Solutions webinar featuring Brian Sommers, Principal, Chief Investment Officer of HBKS Wealth Advisors; and hosted by James Dascenzo, CPA, Principal, National Director of HBK Manufacturing Solutions, and Amy Reynallt, MBA, CMA, HBK Senior Manager, Regional Director of HBK Manufacturing Solutions.
Banking Crisis Background
In March 2023, the Federal Deposit Insurance Company (FDIC) took control of three banks – Silicon Valley Bank (SVB), Signature Bank, and Silvergate Bank. Around the same time, Credit Suisse, the second largest bank in Switzerland, also failed and was purchased by a competitor. The failures were all exposed by similar issues, including narrowly focused customer markets or exposure to cryptocurrency. However, one common factor is critical in each situation – each bank was mismanaging its balance sheet. Therefore, it is unlikely that we will see a large number of additional banks fail.
However, we may see broader consequences of these recent failures. For instance, the banking industry is tightening lending standards and maintaining higher levels of liquidity. This may lower loan volumes which could make it more challenging to borrow. Note: Since the airing of this webinar, First Republic bank was also shut down and subsequently purchased by JPMorgan Chase.
Manufacturers Action Items
Manufacturers may consider:
For more information on this topic, contact us as follows:
Brian Sommers, Principal, Chief Investment Officer – HBKS Wealth Advisors – bsommers@hbkswealth.com
Jim Dascenzo, Principal, National Director – HBK Manufacturing Solutions – jdascenzo@hbkcpa.com
Amy Reynallt, Senior Manager, Regional Director – HBK Manufacturing Solutions – areynallt@hbkcpa.com
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