Bargain basement prices won't last long
There are 5,000 banks in the US (I think?). Most are OK, many technically insolvent but nobody cares. A few are in trouble because they are/were badly managed. Poor management and involvement with crypto seem to be the hallmarks of the few banks that are in serious trouble.
I think this is great but isnt the market just pricing in the chance some banks will fail and their stock will go to zero?
"And whatever you may think about how bank stocks should be valued relative to risk assets as a whole, within the banking sector, it is not clear why regional banks are expected to underperform G-SIBs."
I can tell you why. It's an assumption that, whatever else happens, the regulators will not and cannot allow their cronies to fail.