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Pod 19: Silicon Valley and Signature Bank Collapse, Regional Bank Crisis, The Fed's Response, CPI, and New Fed Policies for Markets

Unusual Whales

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The Banking Sector Is Into a New Penalty Box

There was more deposit beta or potential deposit beta, not just deposits looking for higher yields. Banks had to make a decision as to whether they were going to sacrifice profitability or not. The banking sector is now put into a new penalty box for probably two to three years until their asset liability mismatch gets right sized.

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