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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.

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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?

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"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.

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