‘We are running out of time — Bill Ackman’s latest warning on regional banks

 “At this rate, no regional bank can survive bad news or bad data as a stock price plunge inevitably follows, insured and uninsured deposits are withdrawn and ‘pursuing strategic alternatives’ means an FDIC shutdown over the coming weekend,” 

“And there is no incentive to bid until Sunday after the failure.”

MarketWatch 4 May  2023

https://www.marketwatch.com/story/we-are-running-out-of-time-to-fix-this-problem-bill-ackmans-latest-warning-on-regional-banks-c8993161


It is unlikely anyone will buy PacWest because of the precedent that the FDIC has set.

Why would a large bank buy a smaller bank before the FDIC seizes it?

If they wait for the bank to collapse, the FDIC seizes it and then shares losses with the acquirer.

On top of this, the large bank who acquires the collapsed small bank pays pennies on the Dollar for the assets.

https://twitter.com/KobeissiLetter


PacWest stock plummets more than 50%

https://englundmacro.blogspot.com/2023/05/pacwest-stock-plummets-more-than-50.html



Regional-Bank Shares Dive as Investors Fret About Contagion

https://www.wsj.com/articles/regional-bank-shares-dive-as-investors-fret-about-contagion-7717c91a






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