Reaction to Bank Failures – Director of Black School of Business at Penn State Behrend Provides Analysis

Dr. Filbeck said contagion can be psychological, fueled by fear and internet chatter that isn’t based in data, but it can be real too if a bank that fails has direct ties to other financial institutions.  We asked if he thinks any more banks will fail before this crisis is over. “I mean that would of course take a crystal ball to be able to answer that question conclusively, but I see no reason for continued contagion. Obviously I think that there will a very diligent watch on banks that may appear vulnerable particularly in the short run, but there’s no reason to believe this will cause a continuation of concerns.”