US regulators seize troubled lender Republic First Bancorp

reuters.com

11 points·guluarte··6 comments

The list is growing and everything looks normal, what are we missing?

Are we missing anything? Companies go bankrupt all the time.

Not banks.

I was wondering the same thing, multiple well-known medium-sized banks fold. Am I wrong to say that it reminds me of 2008? Is there a bubble that’s about to burst?

Banks sold a lot of mortgages at 2% rates without anticipating the rapid rise to 7%.

The unlucky banks still had these on their books instead of having already sold them off as MBS and became insolvent when the mortgages became worth less.

As long as the government keeps swooping in and bailing out the failing small banks with this issue it won’t create a larger problem for the economy. The large megabanks don’t have this balance sheet issue as i understand it.

The MBS bit is definitely a factor, I would wager the overnight rate is a bigger factor given the timing of the collapse...

I would also have to guess that the bankruptcies of some smaller businesses is having an impact on the regional banks. A small mom and pop store, to me, is more likely to use a regional bank than a big one, and there are businesses around me in that category slowly/quietly disappearing...

It is a very slow burn, sadly I fear that this is about the rate of burn the fed is hoping for and we won't see it end until either they are happy or it starts to spiral out of control.

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