Regional bank earnings may expose critical weaknesses, former FDIC Chair Sheila Bair warns
Publishing timestamp: 2024-04-16 21:18:52
Summary
Former FDIC chair Sheila Bair expresses concerns about regional banks' weaknesses, particularly in their reliance on industry deposits and exposure to commercial real estate. She warns of potential instability in uninsured deposits and calls for reinstating FDIC's transaction account guarantee authority. Regional banks are struggling, with the KRE ETF down almost 13% and several members experiencing significant losses. Bair is worried about the impact of higher Treasury yields on commercial real estate borrowers and the potential distress in refinancing. However, she notes that regional banks' issues could benefit larger institutions.
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Tickers: KRNY, COLB, .BKX, US10Y, KRE, MCB, NYCB, VLY,
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