US Regional Banks Remain Under Pressure as First Republic Sinks

volsrock said:
First Republic Bank remained under pressure, with shares plunging 70% in US premarket trading even after the lender moved to try and quell concern about its liquidity after the failure of SVB. PacWest Bancorp lost more than 40%, Western Alliance Bancorp sank 30%, Charles Schwab Corp. dropped about 20% and Zions Bancorp fell 15%. Comerica Inc. slid 7%.

https://finance.yahoo.com/news/us-regional-banks-remain-under-092829687.html


Tip of the iceberg
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An article on the same subject:

Ellen Brown: The Looming Quadrillion Dollar Derivatives Tsunami | Scheerpost

I haven't read it all, but it looks pretty foreboding. I like the possible solutions Ellen offers in her concluding remarks:

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Our tax dollars should be working for us in our own communities, not capitalizing failing SIFIs on Wall Street. Our stellar (and only) state-owned model is the Bank of North Dakota, which carried North Dakota through the 2008-09 financial crisis with flying colors. Post-GFC (the Global Financial Crisis of ’07-’09), it earned record profits reinvesting the state’s revenues in the state, while big commercial banks lost billions in the speculative markets. Several state legislatures currently have bills on their books following the North Dakota precedent.

For a federal workaround, we could follow the lead of Jesse Jones’ Reconstruction Finance Corporation, which funded the New Deal that pulled the country out of the Great Depression. A bill for a national investment bank currently in Congress that has widespread support is based on that very effective model, avoiding the need to increase taxes or the federal debt.

All those alternatives, however, depend on legislation, which may be too late. Meanwhile, self-sufficient “intentional” communities are growing in popularity, if that option is available to you. Community currencies, including digital currencies, can be used for trade. They can be “Labor Dollars” or “Food Dollars” backed by the goods and services for which the community has agreed to accept them. (See my earlier article here.) The technology now exists to form a network of community cryptocurrencies that are asset-backed and privacy-protected, but that is a subject for another column.

The current financial system is fragile, volatile and vulnerable to systemic shocks. It is due for a reset, but we need to ensure that the system is changed in a way that works for the people whose labor and credit support it. Our hard-earned deposits are now the banks’ only source of cheap liquidity. We can leverage that power by collaborating in a way that serves the public interest.
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Our Failed Elite Class has burned up every bit of their credibility, there is nothing to stop contagion, and the coming of the next depression.
 
Hawkeye10 said:
Our Failed Elite Class has burned up every bit of their credibility, there is nothing to stop contagion, and the coming of the next depression.
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I'd like to think there's a way out, but I suspect you're right. At this point, I think the only thing that can be done is to try to mitigate the damage.
 
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