Is First Citizens BancShares ($FCNCA) Quietly Engineering a Banking Empire No One Saw Coming?
The collapse of SVB sent shockwaves through the regional banking sector, sparking concerns over liquidity, uninsured deposits, and poor interest rate risk management at other banks. The SPDR S&P Regional Banking ETF (KRE), which tracks a diversified group of regional banks, plummeted in the aftermath. From early March to mid-May 2023, KRE lost over 30% of its value, reflecting widespread investor fear of contagion and regulatory tightening. Other regional banks like Signature Bank and First Republic also failed or required rescue, intensifying the sector’s stress.
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