Senator John Kennedy: Banks are just … sophisticated ponzi schemes…. Mohamed El-Elrian: We’re making the big banks bigger… We have increased moral hazard.

Senator John Kennedy: "Banks are just … sophisticated ponzi schemes. pic.twitter.com/tBaOIBOsbi

— unusual_whales (@unusual_whales) May 6, 2023

"We're making the big banks bigger," says Mohamed El-Elrian on $JPM buying $FRC. "We're changing the conventional wisdom about what is a safe bank. It turns out the banks that were once viewed as too big to fail are now the safe banks. We have increased moral hazard." pic.twitter.com/8J2ozmClv6

— unusual_whales (@unusual_whales) May 7, 2023

Banking turmoil is far from over. Bill Ackman, Jeffrey Gundlach, and Mohamed El-Erian have renewed their warnings about unresolved risks.