What was the biggest drawback of Andrew Jackson's pet banks?

The biggest drawback of Andrew Jackson's pet banks was that they contributed to economic instability and speculation. By reallocating federal funds from the national bank to these state-chartered banks, Jackson created a fragmented banking system that lacked oversight and regulation. This led to reckless lending practices and excessive inflation, culminating in the Panic of 1837, which resulted in a severe economic downturn. The absence of a centralized banking authority left the economy vulnerable to fluctuations and crises.