Did you miss the part of this press release where they announced that Signature Bank collapsed today? That makes it pretty clear that the contagion was real. Treasury’s actions make it abundantly clear as well.
There are 4,500+ commercial banks in the US with 70,000+ branches.
The idea that regional banks were going to collapse en masse because of the actions of one ineptly managed, highly unusual (in terms of customer and deposit mix) bank is ridiculous.
And trying to deliberately create a scare campaign so you can put political pressure on the FDIC to cover uninsured amounts is insidious and frankly evil.
And you think Jason who-the-fuck-cares-about-what-he-thinks Calacanis somehow has a meaningful role in a scare campaign? He was just one of the scared people.
And guess what, the FDIC and the administration actually do believe there was a clear risk of regional banks going under. That's literally the topic of the article you're commenting under.
I feel this solution is too strong handed and I don't think the world would have ended if there wasn't a solution tomorrow and a hundred startups would have to take a 20-30% haircut on their raised funds by selling their claims, so I don't agree with Jason, but calling him evil for his standpoint and voicing it is what's ridiculous.
Ok but did you really not address the fact that Signature Bank literally collapsed today? You know that is a different bank, correct? Did you see the stocks and sector ETFs for regional banks last week?
ETFs have weightings. SVB actually was a big portfolio piece for some ETFs. Especially because during COVID and the money printer boom, SVB stock went to the moon and hit $800 / share at one point.
I don't think ETFs are a good sign. One of my favorite bank ETFs, PGF is only down 6% on sentiment which isn't much.
