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Why did investment institutions suddenly this morning, May 2, 2023, decide that today is the day to be worried about regional banks? Funny that just yesterday Yahoo Finance had headlines quoting Jamie Dimon saying all is well with regional banks and the problem is contained, and markets rose.
Given that some regional bank put options are up 1,000% today (PACW, for example), I sure would have liked to know that today, May 2, 2023 was the day the "professionals" decided to be worried about regional banks. Can anyone explain how today is different from yesterday, or even the past few weeks, that the large investment firms decided it's time to sell off regional bank stocks? What exactly triggered this that it happened today?
Here are some articles from yesterday, May 1, that were Yahoo Finance headline articles, invoking the authority of the great Jamie Dimon who told us all was well with regional banks:
* Dimon: 'This part of the crisis is over' https://finance.yahoo.com/news/dimon-this-part-of-the-crisis-is-over-141909891.html David Hollerith, Senior Reporter. Yahoo Finance. May 1, 2023.
FTA:
> JPMorgan Chase CEO **Jamie Dimon said Monday** that the seizure of First Republic **puts to rest an excruciating period of panic** for the banking system.
>
> **"This part of the crisis is over,"** he told analysts on a Monday conference call.
>
> In the last eight weeks, three of the biggest 30 US banks failed and hundreds of billions in deposits left small banks as customers scrambled for safety and higher yields.
>
> ...
>
> It puts Dimon back at the center of a banking crisis for the second time in 15 years. In 2008 JPMorgan purchased investment bank Bear Stearns and then Seattle’s Washington Mutual.
>
> This period, he told reporters Monday, "is **nothing like 2008, 2009** for a lot of different reasons."
* Stocks mixed as JPMorgan Chase takes over First Republic: Stock market news today https://finance.yahoo.com/news/stocks-mixed-as-jpmorgan-chase-takes-over-first-republic-stock-market-news-today-135107658.html Dani Romero, Reporter. Yahoo Finance. May 1, 2023.
FTA:
> U.S. stocks were mixed at the open on Monday as Wall Street digests JPMorgan Chase’s takeover of regional lender First Republic Bank.
>
> ...
>
> Regulators seized First Republic (FRC) early on Monday and sold most of the bank's operations to JPMorgan in the largest bank failure since the 2008 financial crisis. JPMorgan Chase CEO Jamie Dimon said that the seizure of First Republic puts to rest panic for the banking system.
>
> **"This part of the crisis is over,"** he told analysts on a Monday conference call.
>
> A number of banks, including JPMorgan and PNC, had submitted bids on Sunday to the Federal Deposit Insurance Corporation to acquire the embattled bank.
>
> ...
>
> **Shares JPMorgan Chase & Co. (JPM) rose 3%** Monday morning.
>
> In other news, interest rates will be in the spotlight this week as the Federal Reserve's policy-making committee meeting kicks off on May 2. Markets put chances of a quarter-point hike at 86% as of Monday morning.
>
> Additionally, data releases on construction spending, factory orders, jobless claims are on deck this week, and the big headliner at the end of the week will be the April jobs report. All the economic data is expected to lead to another volatile week for the Treasury yields.
The second article here goes into factors that should determine investment decisions this week, but didn't mention how investors will view the regional banks. Though at the beginning it did acknowledge that investors were "digesting" the move by J.P. Morgan to acquire First Republic.
Does anyone have any idea why today was the day for the drop in regional bank stocks?
Even better: who, if anyone, predicted this would happen in the first week of May?
Given that some regional bank put options are up 1,000% today (PACW, for example), I sure would have liked to know that today, May 2, 2023 was the day the "professionals" decided to be worried about regional banks. Can anyone explain how today is different from yesterday, or even the past few weeks, that the large investment firms decided it's time to sell off regional bank stocks? What exactly triggered this that it happened today?
Here are some articles from yesterday, May 1, that were Yahoo Finance headline articles, invoking the authority of the great Jamie Dimon who told us all was well with regional banks:
* Dimon: 'This part of the crisis is over' https://finance.yahoo.com/news/dimon-this-part-of-the-crisis-is-over-141909891.html David Hollerith, Senior Reporter. Yahoo Finance. May 1, 2023.
FTA:
> JPMorgan Chase CEO **Jamie Dimon said Monday** that the seizure of First Republic **puts to rest an excruciating period of panic** for the banking system.
>
> **"This part of the crisis is over,"** he told analysts on a Monday conference call.
>
> In the last eight weeks, three of the biggest 30 US banks failed and hundreds of billions in deposits left small banks as customers scrambled for safety and higher yields.
>
> ...
>
> It puts Dimon back at the center of a banking crisis for the second time in 15 years. In 2008 JPMorgan purchased investment bank Bear Stearns and then Seattle’s Washington Mutual.
>
> This period, he told reporters Monday, "is **nothing like 2008, 2009** for a lot of different reasons."
* Stocks mixed as JPMorgan Chase takes over First Republic: Stock market news today https://finance.yahoo.com/news/stocks-mixed-as-jpmorgan-chase-takes-over-first-republic-stock-market-news-today-135107658.html Dani Romero, Reporter. Yahoo Finance. May 1, 2023.
FTA:
> U.S. stocks were mixed at the open on Monday as Wall Street digests JPMorgan Chase’s takeover of regional lender First Republic Bank.
>
> ...
>
> Regulators seized First Republic (FRC) early on Monday and sold most of the bank's operations to JPMorgan in the largest bank failure since the 2008 financial crisis. JPMorgan Chase CEO Jamie Dimon said that the seizure of First Republic puts to rest panic for the banking system.
>
> **"This part of the crisis is over,"** he told analysts on a Monday conference call.
>
> A number of banks, including JPMorgan and PNC, had submitted bids on Sunday to the Federal Deposit Insurance Corporation to acquire the embattled bank.
>
> ...
>
> **Shares JPMorgan Chase & Co. (JPM) rose 3%** Monday morning.
>
> In other news, interest rates will be in the spotlight this week as the Federal Reserve's policy-making committee meeting kicks off on May 2. Markets put chances of a quarter-point hike at 86% as of Monday morning.
>
> Additionally, data releases on construction spending, factory orders, jobless claims are on deck this week, and the big headliner at the end of the week will be the April jobs report. All the economic data is expected to lead to another volatile week for the Treasury yields.
The second article here goes into factors that should determine investment decisions this week, but didn't mention how investors will view the regional banks. Though at the beginning it did acknowledge that investors were "digesting" the move by J.P. Morgan to acquire First Republic.
Does anyone have any idea why today was the day for the drop in regional bank stocks?
Even better: who, if anyone, predicted this would happen in the first week of May?
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