Credit event? US regional banks buckle under Fed

Friday 10 March 2023

Last night we saw two US regional banks get experience runs of one sort or another. This appeared to be related to stupid BTC exposures but there is more going on.

The US regional bank index has crashed through support:

What’s going on? It may be the old chestnut of commercial loan exposures, the very segment that damn near bankrupted Aussie banks in 1990.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.