There’s never one cockroach and there’s never one bank run. From Quoth the Raven at quoththeraven.substack.com:
Literally one day after I reiterated my extremely bearish outlook on regional banks, they are getting crushed again. Meanwhile, gold goes parabolic.
Literally one day after I reiterated my extremely bearish outlook on regional banks — among other sectors — regionals went tits up today following a series of troubling disclosures from major players like Zions Bancorporation, Western Alliance, and Jefferies.
10 Areas Of The Market I’d Avoid Right Now
Oct 15
Reuters summarized today by noting Zions plunged roughly 12% after revealing it would take a $50 million charge tied to two underperforming commercial loans from its California division. Western Alliance dropped nearly 11% after it filed a lawsuit alleging fraud by a borrower, and Jefferies slid about 9% after admitting exposure to bankrupt auto parts maker First Brands.
Between the bankruptcies, lawsuits, and surprise losses, investors finally started to realize what I’ve been warning about for months: the toxic crap in regional banking isn’t isolated — it’s fucking everywhere.
The banks, analysts and the financial press tried to put a polite spin on it, calling the moves “unease over credit quality” or “idiosyncratic risk.” But let’s be honest — when multiple regional banks disclose major losses and lawsuits in the same breath, it’s not a coincidence. It’s contagion.
Never any repercussions for 2008?
Too big to fail and all that.