The federal government / FDIC actions have led to a massive attack on regional banks by shorts.
The market is betting that the collapse of Silicon Valley Bank could spread financial contagion throughout the sector, and the government would be unable to stop the looming bancruncheon.
After all, by its later actions, the government has said: yes, we will reimburse users, but bondholders and shareholders of such banks will be rolling in a big red grate, so the shorts have decided to help the government out a bit on this one: Stock dynamics for today:
1. Western Alliance, $WAL: -75%
2. First Republic, $FRC: -65%
3. Zions Bancorp, $ZION: -43%.
4. PacWest, $PAC: -41%.
5. Comerica, $CMA: -33%.
6. Fifth Third, $FITB: -20%
