Could First Republic Bank Collapse Trigger a Recession?

Now we’ve all been reminded that US bank deposits are federally insured up to $250,000. Amounts above that are well out of reach for most soccer moms and barbecue dads, so they don’t have to fear losing their bank savings.
The bigger question is whether the banking crisis will continue to spread and how it might spill over into the economy — for example, by making it harder to get loans, spurring more layoffs and even tipping the country right into recession.
Most experts believe we are still far from serious consequences, although there may be more short-term pain ahead.
“For the vast majority of people, this mini-crisis will pass, and we will all have many other things to worry about in our professional and personal lives,” said Ross Levine, finance professor at UC Berkeley’s Haas School of Business. Still, he said, “This is a very uncertain time.”

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