Mission Accomplished – Regional banks see flight of deposits to Mega-banks

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Investors are dumping regional-bank stocks despite a fresh federal backstop

The unexpected demise of Signature Bank over the weekend, along with the failure of Silicon Valley Bank on Friday, ignited a shoot-first-ask-questions-later reaction among regional-bank investors as customers moved deposits to the largest U.S. banks for perceived safekeeping, observers said Monday.

Stocks of regional banks such as First Republic Bank (FRC), Western Alliance Bancorp (WAL), PacWest Bancorp (PACW) and Zions Bancorp (ZION) dropped Monday even after U.S. bank regulators set up a new emergency-loan program as a backstop for deposits.

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www.morningstar.com/news/marketwatch/20230313479/regional-banks-are-seeing-flight-of-deposits-to-too-big-to-fail-megabanks

h/t CharlieFoxtrot

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