This is what happens when you have the fed messing with your money supply. Gaming the system for certain peoples gain. Instead of small ups and downs within a fairly stable system we have to deal with destruction of savings, and major financial crisis.
This is why Yellen is crying about the debt limit. She’s running out of money and doesn’t have enough money to bail out all the regional banks lining up...
No doubt they have already reached out to Yellen and notified her things are not looking so good.
Regional bank stocks plummet as First Republic’s demise weighs
https://www.reuters.com/business/finance/us-regional-bank-stocks-fall-second-day-first-republic-failure-weighs-2023-05-02/
May 2 (Reuters) - Shares of major U.S. regional banks plunged on Tuesday as the demise of First Republic Bank (FRC.N) triggered investor concern about the financial health of other mid-sized lenders.
“This is potentially a big deal, which hopefully won’t materialize to anything significant.”
Los Angeles-based PacWest Bancorp (PACW.O) tumbled by more than 35%, while Phoenix, Arizona-based lender Western Alliance Bank (WAL.N) and Cleveland, Ohio-based KeyCorp (KEY.N) sank nearly 20% and 10%, respectively.
Comerica (CMA.N), a Dallas, Texas-based bank, was down 11%, while Valley National Bankcorp (VLY.O), which owns Valley National Bank in Wayne, New Jersey, was 6% lower after shedding more than 20% on Monday.
“Historically, once you see a resolution of one institution, the market tends to go after who they view as the next weakest link,” said Goldman Sachs regional banks analyst Ryan Nash.
JPMorgan Chase’s deal for First Republic’s assets has extinguished risks of a contagion, some analysts said. But others noted the deal makes the biggest U.S. bank even bigger, raising the risk of a heightened “too-big-to-fail” problem that regulators have been trying to solve for years.