As a dilettante here, I would guess that Chase and Capital One are unlikely to fail, the latter because it has very little brick and mortar, and the former because it has the support of all the wokies in the deep state. I wouldn’t be so sure of Wells Fargo, however.
The problem is that too many people are affected and people have to go somewhere. There is currently an adjustment going on. It started in IT with salaries starting to adjust downwards which was long overdue.
They are called “Too big to fail” for a reason.
These smaller banks usually fail because they are not diversified enough and they get “caught” with their pants down.
I was reading these guys (NYCB) were deep into commercial real estate. That is not a good place to be in NYC.
Chase and Citi are big investment banks. Most of those guys are not as exposed to specific market fluctuations as the smaller guys.
This is when you start seeing the “Pac Man” situations that drove the banking boom in the 90’s. The bank I worked for would buy up “little” banks every three months. It was actually exhausting to “merge” with another culture all the time—especially when the rank and file thought it was a “merger”, but it was really a “takeover.”
This happens in one form or another every cycle.
I have some thousands with Well Fargo and will be moving it *all* out in a few days. I had been planning to anyway. So this will leave me with Chase, TD Bank and Fidelity.
The 5 Safest Banks in the United States
https://nomadcapitalist.com/finance/safest-banks-in-the-us/