the Silicon Valley bank issue appears to be isolated and a small part of the US banking sector in that it relied on the tech industry (venture capital companies) to keep borrowing and not withdraw their money all at the same time, which clearly was an assumption that could not hold forever.
As a result or the bank run, they had to raise equity which failed because their shares price tanked so nobody was going to buy in when they could buy lower on the market and I think selling their treasury investments which means selling at a loss because those bonds are now worth much less given the interest raise rises, only reduced their share price further
so the regular shut them down
it is likely a white knight will come in and buy them out at a huge discount and pay out all depositors come the end of the weekend. The buyer will get this at a steal.
But the major banks in the US on Friday have held up pretty well and JP Morgan Chase went up on Friday night which augurs well for the Australian 4 big banks come Monday.
None of the big banks in the US or Australia are leveraged like SVB and much better diversified so they way I see it, this is a buying opportunity for the big 4.
Buy when others are fearful and sell when others are greedy.
CBA Price at posting:
$95.51 Sentiment: Buy Disclosure: Held
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