Thursday, July 2, 2009
Regional Banks Break Down (Again)
The regional banks don't get no TARP, ain't part o' no keiretsu, and ain't in good shape. Many will be failing over the next few years and the bigger keiretsu banks will devour their carcasses, keeping all their "good" assets and shitting out the crap/"bad" assets into the laps of the FDIC and US Treasury (i.e. we, the taxpayers).
I follow the KBW Philadelphia Regional Banking Index ($KRX) as it continues to lead the new bear market leg down (which has already begun). A fresh breakdown below support occurred today. See my previous recent post on the $KRX and here's fresh intra-day charts showing the carnage (first a 60 minute chart of the last 4 months, followed by a shorter term 15 minute intra-day chart of the last 15 days):
EDIT @ 1350 hours (Cali time): Another bank failure just announced by the FDIC, as always, after the close. We'll see if any more pop up over the holiday weekend.