FRC is getting its brains blown out this morning, OFF BY 27% on news they lost 40% of their deposits in last month’s great big bank run. If you’re still banking at a regional, your money is likely safe. However, if you’re investing in KRE or regionals directly — you are a fool and should be shot.
Sure, being shot for mal-investments is a bit crude and probably a tad extreme. But how else will you people learn? The JPM oligarchy is sucking in all of the money from the regionals — because there are ZERO incentives to leave deposits at a regional in this fast paced globalized banking world.
Pray tell me why I should keep my money at FRC instead of JPM?
Markets are SOFT early on — led lower by regionals and commodities. I am not fooled, but down 1.25% because, well, I am a bit fooled early on. Nevertheless, I remain CALM and collected and look forward to the rally that is sure to come.
I will now sit here and wait for the rally.
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The JPM and others “contribution” of $30B to FRC in the form of deposits means they might even get their $30B back soon. This thing has to be very close to insolvent. A rebirth of “bank run” activity would spell big trouble for the stock market.
Why would they leave an unexploded bomb like FRC for weeks? Surely they recognized the risk of rekindling bank run emotion if FRC failed just a few weeks later?