The US banking sector continues to be in distress, despite the fact that on the surface everything looks normal and the sector as a whole has rebounded from the March bottom. Deposits have left banks for good, looking for yield and security, and have been substituted by several federal programs as you can see below. $300Bn in outstanding aid is what keeps community and regional banks alive. It was $400 Bn in March but due to bank failures and acquisitions it went down to the current amount and it has remained pretty stable since then. The #fed knows this is part of the collateral damage #ratehikes have created, and that’s why we may see a pause in the June meeting. #cre may be the next shoe to drop that may affect the whole banking system. Assisted living for the sector may continue or even increase for a while.
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