My Investing Muse

Daily Mail UK has reported the following in a recent 28 August 2023 news article : Growing numbers of Americans are being left without access to basic financial services as banks have axed more than 1,000 branches this year,  DailyMail.com  can reveal. Data from S&P Global Market Intelligence shows a total of 1,144 national and regional banks were closed between January 1 and July 31 across 49 states - and firms are pulling out of some areas faster than others. Accelerating closures run a risk of communities becoming so-called 'banking deserts' - when they are without access to a bank or credit union within 10 miles - leaving residents increasingly vulnerable to falling prey to high-fee lending options such as payday loans.    The axings are not limited to small banks in rural communities - they are also happening to large legacy banks in highly populated areas.   And plenty more are planned. This month Wells Fargo filed with the Office of the Comptroll...

Personally, I think that the banking crisis is yet to be over and there are also concerning signs in the market about the macro conditions & US economy. One of the signs of concern is the increasing debts. Household debt record, more repossession of vehicles, more credit card debt. Unfortunately, I do not think that the banking crisis is over and we should expect collateral damages coming soon. The earnings of the non-Big 4 banks (Citi, JPM, BoA & WFC) should attract more deposits at the expense of the smaller/regional banks. As per the screenshot above, the smaller/regional banks play an important role in the Commercial Real Estate (CRE) ecosystem. Should they go under, CRE is likely to be affected. Eventually, the market may be left with the Big 4 banks. SVB Banks like SVB have been serving the startup sector for 40 years, surviving a few market crashes along the way. This has given them experience in the startup sector, allowing them to offer more attractive financing suppor...