The failure of the largest banks in the country is something we haven’t seen since the Great Financial Crisis of 2008. The dire ripple effects aren’t yet fully understood by market participants.
On the front lines of this analysis is Hedgeye Financials analyst Josh Steiner. “The takedown of Signature over the weekend was obviously extraordinary,” explains Steiner in the video excerpt from The Call @ Hedgeye above. “Signature Bank is not a small bank, with $110 billion in assets and the 29th largest bank in the country. I think we knew it had problems going into the weekend and that was reflected in the equity price but a total wipeout of equity holders and unsecured debt holders? Wow.”
In the video above, our entire research team (from Financials to Technology to REITs and Communications) provides their two cents on what they’re watching as this risk event unfolds.
Hedgeye Risk Manager in Chief Keith McCullough sums it up best. “My point on this is that A) It’s not over and B) There are going to be a whole new set of behavioral realities born out of the government’s decision here,” explains McCullough. “The corporate side is going to come under intense pressure to mark-to-reality.”
Watch this entire video above.
