This year’s Met Gala had some wild looks, but the cockroach costume really stood out. While it may have been fun to witness all the over the top looks, banking is no laughing matter. In fact, this particular crisis doesn’t seem to have landed yet, with smaller regional banks just now experiencing their share of the pain.
Silicon Valley Bank got a backstop from regulators as a necessary measure to provide stability; JPMorgan promised billions to First Republic to signal recovery, and UBS had to acquire Credit Suisse to battle international ramifications. Even with JPMorgan finally acquiring First Republic, it’s still unclear if the banking crisis has come to an end.
The Financial Times reports that customers of regional banks are starting to ask questions about their safety, which is only justified given the current circumstances. And despite Jamie Dimon, the CEO of JPMorgan, calling the end of the crisis, stocks of Pacific West and Western Alliance fell on Tuesday.
Speaking of JPMorgan, the world’s financial giant’s agreement with federal regulators is still fresh off the press. So, can we expect the end of the banking crisis soon? That’s a tricky question, as the answer constantly changes.
The issue might be an ever-repeating cycle that never quite ends. As customers start to become wary and shift to bigger banks, it might lead to other banks failing and customers moving around. In such cases, the end of the banking crisis might never truly be reached and this ‘game of musical chairs’ might just go on forever.
Recently, a fintech startup named Finix is trying to join the competitive ranks of giants like FIS and Fiserv as a payments processor. Meanwhile, Carl Icahn is strangely in the spot of a takeover. The famed corporate raider is dealing with accusations like inflated asset valuations and hints of a Ponzi scheme by short seller Hindenburg Research.
At the Milken Institute Global Conference, five finance execs discussed the Federal Reserve’s approach to rates. Alignment Growth just raised $360 million with plans to invest in media, entertainment, and gaming, while there are many speculations over what could happen if the US defaults on its debt. We’ve also heard cases of people whose homes were caught up in Airbnb scams, and who would have thought you can make money from renting out your work clothes on the side?
At the end of the day, much like the wildest Met Gala looks, can the banking crisis ever truly end? We will have to wait and see, but one thing is for sure: all these stories serve as a timely reminder to stay vigilant in the ever-changing financial landscape.
