Article says “there are “a few” banks the department is closely watching”.....
Which means they’re likely on the edge....wonder which ones?.
Rumors earlier re:Wells Fargo and BofA. But may be related to posting issues rather than SVB.
RE:.....wonder which ones?.
Watch for guys selling luxury cars on the front lawn for cash and houses as “must sell—as is.”
There will be other banks failing soon, don't know which ones. But I've read of banks that had tons of money, that lent out billions in 10-year loans between 1 and 2 percent interest. Then the Fed raised rates far beyond that and the banks are stuck losing money as they sell off loans at a huge loss. Would you buy a 1.2 percent loan when you can make 5 percent elsewhere? Not without a huge reduction on the principal costs. As a depositor, wouldn't you withdraw your money earning less than 1 percent in order to invest elsewhere at 5 percent? Some banks are screwed.