Speaking of Contageon

The trading for over 30 banks has been halted. Is the bank collapse happening in real time? pic.twitter.com/UXZt6caf53

— Ian Miles Cheong (@stillgray) March 13, 2023

At least 30 banks

There was a blood bath in bank stocks today, with at least 30 banks having trading in their shares halted because their value was falling off a cliff.

This process is called "Circuit Breakers," and it was instituted after the "Black Monday" stock market crash of 1987.

It looks like another Silicon Valley style, "Conceirge Bank," with an overabundance of large, and largely uninsured depositor, First Republic, is getting a particularly harsh drubbing, but it is by no means alone:

Shares of First Republic Bank plunged Monday, and major U.S. regional bank stocks suffered their largest decline in three years, despite efforts by regulators to calm investors following a pair of bank failures.

First Republic closed down nearly 62% after earlier falling as much as 75%, its largest decrease on record. The bank said Sunday that it had shored up its finances with additional funding from the Federal Reserve and JPMorgan Chase. On Monday, President Biden said the banking system is safe, stressing steps taken to limit the fallout from the failures of Silicon Valley Bank, a California lender that catered to venture capitalists, and Signature Bank, a New York firm with ties to cryptocurrencies.

 ………

At First Republic, 68% of deposits were uninsured at the end of 2022, while 64% were uninsured at Comerica, filings show. More than half of deposits were uninsured at Zions, PacWest Bancorp, and Western Alliance Bancorp, all of whose shares were hit hard again Monday.

Down 62%?  This is not going to end well.

What is worse is that this was foreseeable, and in fact foreseen in 2018, when Dodd-Frank regulations were eased.

After the Great Depression, we remembered the lessons for 80 years.  This time, we remembered for about 10 years.