Michael Burry Scatter Chart of the Coming Bank Failures

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— Michael Burry Archive (@BurryArchive) March 18, 2023

chatgpt: Quadrant 1 (top left): Banks in this quadrant have a relatively low percentage of deposits greater than 250k % of total (below the median of 30%) and a relatively low percentage of unrealized losses % of CET1 Capital (below the median of 60%). These banks may be considered to have a lower level of risk and are generally considered to be in a strong financial position.

Quadrant 2 (top right): Banks in this quadrant have a relatively high percentage of unrealized losses % of CET1 Capital (above the median of 60%) but a relatively low percentage of deposits greater than 250k % of total (below the median of 30%). These banks may be considered to have higher risk and may need to take steps to address their unrealized losses.

Quadrant 3 (bottom left): Banks in this quadrant have a relatively high percentage of deposits greater than 250k % of total (above the median of 30%) but a relatively low percentage of unrealized losses % of CET1 Capital (below the median of 60%). These banks may be considered to have a greater deposit base and therefore may have a higher level of stability, but they may also be vulnerable to market and economic downturns.

Quadrant 4 (bottom right): Banks in this quadrant have a relatively high percentage of deposits greater than 250k % of total (above the median of 30%) and a relatively high percentage of unrealized losses % of CET1 Capital (above the median of 60%). These banks may be considered to be in a relatively weaker financial position and may need to take steps to address their unrealized losses and manage risk.

sdny = signature bank
sivb =silicon vally bank
frc = first republic
cma= comerica
usb= us bancorp
wfc= wells fargo
bac = bank of america
key = keycorp bank
ftib= 5th/3rd bank
hbin= Huntington Bancshares Incorporated
tfc=Truist Financial Corp
pacw=PacWest Bancorp
rf=Regions Financial Corp

A credit crunch is coming…

Lots of takes yesterday that the jump in Fed discount window borrowing means this safety valve is "destigmatized." No. Unfortunately, it is likely that banks shrink their balance sheet to get away from discount window borrowing as quickly as possible. A credit crunch is coming… pic.twitter.com/fbLrKkenIe

— Robin Brooks (@RobinBrooksIIF) March 17, 2023

Banks tend to tighten lending standards after having to borrow at the discount window and I suspect this time will not be different. The cascade impact is a slowing economy, more difficult business conditions, and a higher amount of unemployment moving forward. pic.twitter.com/IbJHIVvzsX

— Markets & Mayhem (@Mayhem4Markets) March 18, 2023

WORST PERFORMING BANK STOCKS FOR THE WEEK$FRC -75%$PACW -53%$WAL -50%$FFWM -43%$CUBI -33%$BKU -32%$MCB -31%$CMA -30%$FHN -29%$HPP -29%$KEY -29%$CS -29%$ZION -29%$UMBF -27%

— The_Real_Fly (@The_Real_Fly) March 17, 2023

"Nothing to see here" pic.twitter.com/t516NeJxXN

— AndreasStenoLarsen (@AndreasSteno) March 17, 2023

History of bank failures from 1970 to present in nominal terms pic.twitter.com/tzJzPrYVe7

— Markets & Mayhem (@Mayhem4Markets) March 17, 2023

h/t Edmond Dantès