Money & Economics

bigredfish

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Small Banks Are Crashing
Small Banks Are Crashing | ZeroHedge

  • *FIRST REPUBLIC BANK HALTED FOR VOLATILITY, DOWN 65%
  • *PACWEST HALTED FOR VOLATILITY; DROPPED 41% TO LOWEST ON RECORD
  • *REGIONS HALTED FOR VOLATILITY AFTER PARING 31% DROP TO 20%
  • *WESTERN ALLIANCE SINKS A RECORD 76%; HALTED FOR VOLATILITY
And this is how the various small banks are doing today.



The take home here is that, unfortunately, Joe Biden's 9am pep talk did little to boost confidence in small US banks.

Or, as we put it earlier, ""It would be the Savings and Loan 2.0 Crisis but we regret to inform you there are no savings." Meanwhile, all hail JPMorgan, pardon, JPMega, which is about to have some $18 trillion in deposits.
 

bigredfish

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Banks: The Eye Of The Hurricane?
Banks: The Eye Of The Hurricane? | ZeroHedge

Well, the US has $18 trillion in deposits, and recall that $42BN in SVB deposits were pulled in hours, not days, not weeks... hours. So, you'd have to forgive us if we are just a little skeptical that the Treasury's $25BN mini backstop bazooka and the FDIC's $125BN in bank run buffer will do anything to prevent a far bigger bank crisis now that the horses have fled the barn.

My guess is that this is the eye of the hurricane, rather than the all-clear. History doesn't repeat itself, but it does rhyme, and if you recall the collapse of Bear Stearns in March of 2008, the market climbed for a bit afterwards, and only started its precipitous decline after the collapse of Lehman Brothers six months later.
 

bigredfish

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Good read and explanation of where we are…

Hudson: Why The Banking System Is Breaking Up
 
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