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British newspaper: United Kingdom at risk of another banking crisis

The British newspaper “Express” warned that the UK could face another banking crisis as interest rates rise and banks overseas plunge into turmoil.

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The newspaper quoted political economist Richard Murphy as saying that the collapse of “Silicon Valley” in the US and “Credit Suisse” in Switzerland should be a warning sign for Britain, adding that British banks may have the same vulnerabilities that led to these collapses. ., not yet published.

He continued, “The important thing is that there are so many banks right now, we don’t know their numbers, we don’t know who suffered losses. But we don’t know if they’ve been able to turn around.” According to these data, it can be said that the world is now entering a crisis. The atmosphere of the global financial crisis again in 2008.

The newspaper pointed out that US banks had assets worth $22 trillion, while loans were $20 trillion, so in theory $2 trillion was left to support the US banking system, but some academics conducted a study that suggested US banks must have suffered huge losses. As for government bonds, they are technically insolvent now.

Economist Richard Murphy asked: “Is this likely to be true in the United Kingdom as well?”, “Yes, it is possible because of the massive increase in interest rates … Could one of these banks go bankrupt? The United Kingdom? Yes.” “Should the government be involved? Yes. Should the government guarantee deposits? Yes.”