Bank Contagion? First SVB Crashes, Now First Republic Bank (Down -28% At Open)

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by confoundedinterest17

Ah, memories! I still remember the 2000s housing bubble and subsequent financial crisis and bank bailout from 2008/2009 like it was yesterday. And I remember Representative Barney Frank (D-MA) claiming that the Dodd-Frank legislation would end bank bailouts. I laughed out loud when I heard Mr. Frank utter those preposterous words.

Now here we are again with yet another bank contagion. First it was Silicon Valley Bank, now it is First Republic Bank (down -28% at opening).

And there is a trading halt on First Republic. But YoY growth on FRC’s earnings of -34.7% is horrendous.

See also  Ackman: “I am simply extremely concerned about financial contagion risk spiraling out of control and causing severe economic damage and hardship,” he said.

At least cryptobank Silvergate isn’t down as much as Silicon Valley Bank and First Republic Bank.

And the SPDR Regional Bank index is getting clobbered as Fed withdraws stimulus.


See also  The market doesn't crash when interest rates go up, the market crashes when interest rates go down.

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