Reactions: U.S. banks bounce back from early global bank selloff

"If there's a bleed over effect from Deutsche Bank the initial reaction from investors could be to look at the larger U.S. banks that are more akin Deutsche Bank than the U.S. regional banks."

"The risk of bank runs have gone down because the Fed and the Treasury have stepped in to ease the minds of depositors. But the crux of the issue is that banks are paying a lot less on deposits than what investors can get by putting their money elsewhere." "The sharp increase in interest rates last year caught a lot of people by surprise. People were caught off guard by how quickly rates rose, and obviously some companies made some imprudent decisions in their investment portfolios.

“It takes time. It's going to have to be weeks without any problems in the banking system before markets will be convinced that it's not a systemic problem.”"Two weeks ago we thought this was kind of an isolated event that began with Silicon Valley Bank and then it spread to First Republic and Signature Bank... Today it kind of confirmed this is a global issue right now, and nobody knows where it will end. So people are acting with their feet and continuing to sell bank stocks.

“We consider that the recent events in the banking sector have resulted in substantially increased uncertainty, which is likely to continue to be reflected as substantial short-term volatility in credit markets. We expect bank spreads to be negatively impacted in general and also in the longer term, whether in bank capital or in bank senior debt, as bank investors factor in more uncertainty regarding resolution practices.

"It seems like post what happened to Credit Suisse last weekend, two things might be at play here. First of all, investors don't want to hold on to positions that have any concern around them over the weekend. Getting out of such positions is probably what we're seeing with Deutsche Bank. And of course there is money to be made if you're on the right side of an overreaction in the stocks.

If you can keep magically producing new totally legal currency by the Trillions and get full value for it when you do it then you have the winning strategy. I just don't believe that it can be done for long or for anywhere near as much as the US has gotten away with so far.

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