Regional Bank Stocks Are Crashing Again…

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by Tyler Durden

Thursday, Feb 01, 2024 - 11:05 AM

Yesterday it was NYCB that grabbed the headlines and spoiled Powell's day.

As we detailed here (and here), the banking crisis never went away and it now appears the rest of the market realizes that too as Regional Bank shares are extending their losses significantly today…

This morning saw the US CRE crisis go global as Aozora Bank faced the music on its balance sheet folly. As a reminder, billionaire Barry Sternlicht warned yesterday that he sees more than $1 trillion of losses for office real estate, calling the properties “one asset class that never recovered” from the pandemic. “The office market has an existential crisis right now,” which is largely a US phenomenon because workers haven’t gone back to their desks, Sternlicht said Tuesday at the iConnections Global Alts conference in Miami Beach.

Once a $3 trillion asset class, offices now are “probably worth $1.8 trillion,” said Sternlicht, chief executive officer of Starwood Capital Group.

“There’s $1.2 trillion of losses spread somewhere, and nobody knows exactly where it all is.”

Which acronym will replace BTFP and how many trillions will it inject?

the Fed removed the following sentence from the FOMC statement: "The US banking system is sound and resilient." Cynics asked why the Fed no longer sees "the US banking system is sound and resilient" - is it a signal of rumblings in the economy near-term, or was it just a lie before, and now that bank dominoes are again falling, will Powell be forced to trot it back out?

https://www.zerohedge.com/markets/regional-bank-stocks-are-crashing-again