• Mar 13, 2023
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  "My sense is that all these regional banks are still here on Friday but they're half as big as they were." - Liz Hoffman

  
  

  And they're going to replace this incredibly cheap deposit funding with prevailing Fed funds rate at the new facility, which means their margins just collapsed. So none of these stocks are going to trade at remotely what they've traded at for the last couple of years.

  
  

  The business model's not the same. Their loans will cost a lot more (but have been massively below market for a long time.)
  

  
  

  Why would you have your money at a small bank when there's even a remote risk of this happening again?
  

  
  

  Big banks' competitive advantage is that people think they WILL be there long term. Now they may lose that security to small banks.
  
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  <div>"My sense is that all these regional banks are still here on Friday but they're half as big as they were." - Liz Hoffman</div><div><br></div><div>And they're going to replace this incredibly cheap deposit funding with prevailing Fed funds rate at the new facility, which means their margins just collapsed. So none of these stocks are going to trade at remotely what they've traded at for the last couple of years.</div><div><br></div><div>The business model's not the same. Their loans will cost a lot more (but have been massively below market for a long time.) <br></div><div><br></div><div>Why would you have your money at a small bank when there's even a remote risk of this happening again? <br></div><div><br></div><div>Big banks' competitive advantage is that people think they WILL be there long term. Now they may lose that security to small banks. <br></div>

  "My sense is that all these regional banks are still here on Friday but they're half as big as they were." - Liz Hoffman

  
  

  And they're going to replace this incredibly cheap deposit funding with prevailing Fed funds rate at the new facility, which means their margins just collapsed. So none of these stocks are going to trade at remotely what they've traded at for the last couple of years.

  
  

  The business model's not the same. Their loans will cost a lot more (but have been massively below market for a long time.)
  

  
  

  Why would you have your money at a small bank when there's even a remote risk of this happening again?
  

  
  

  Big banks' competitive advantage is that people think they WILL be there long term. Now they may lose that security to small banks.
  

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