The regional banks Let’s play “who’s next?” It was an ugly day for banks: the KBW bank index was down 11 per cent, and there were 10 banks that lost 20 per cent or more. There is clearly fear and speculation in the market that another bank will follow Silicon Valley and Signature into the arms of the FDIC. The worry, of course, is a run on deposits, but there is no way to see bank-level deposit activity in real time (and a good thing, too). All we can look at are share and bond prices and each bank’s financial statements from the end of the last quarter, hoping that (a) the last set of financials bears some resemblance to current economic reality and (b) depositors will not hit a fundamentally sound bank with mass withdrawals.

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