The Loss of Money From Regional Banks

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The FT's US banking correspondent Stephen Gandell talks about the state of regional banks. He says Silicon Valley Bank was an extreme case, but many other lenders are more diversified. But profits at some local banks have fallen by as much as 50% in recent years due to added risk from their customers and bad loans for commercial real estate developers. "What we're watching for is whether that shrinks to the point where some of these banks say, hey, you know, maybe we can't"

Regional banks across the US have largely stopped the massive outflow of deposits after the collapse of Silicon Valley Bank, investors representing $4.5bn of wiped-out Credit Suisse bonds have filed a lawsuit against Switzerland’s banking regulator, and the FT’s Brooke Masters argues the US court battle over regulator approval of an abortion pill could have a chilling effect on the country’s pharmaceutical industry.

Mentioned in this podcast:

Stability after SVB’s collapse comes at a price for US regional banks

Credit Suisse investors sue Swiss regulator over bond wipeout

The abortion pill case is a disaster for innovation everywhere

The FT News Briefing is produced by Fiona Symon, Sonja Hutson and Marc Filippino. The show’s editor is Jess Smith. Additional help by Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.

Read a transcript of this episode on FT.com

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