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This is the banking crisis that doesn’t end

Hi! Dan DeFrancesco in NYC, and it’s time for one of my favorite annual traditions: the wildest outfits from the Met Gala. Check out the pics here.

As entertaining as it is to see celebrities dress up in ridiculous costumes, I really think the cockroach took the cake this year.

Today, we’ve got stories on a payments startup looking to step its game up, Carl Icahn getting a taste of his own medicine, and what the Hollywood writers’ strike means for your favorite shows and movies.

But first, we’re not out of the woods just yet.

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Wall Street bull falling into a large crater on a red background.

Anna Kim/Insider

1. Ah shit, here we go again.

This is the banking crisis that doesn’t end.

Yes, it goes on and on, my friend.

Some banks, started buying long-dated assets not knowing rates would rise. 

And they’ll continue failing forever, just because…

So, about that banking crisis being over.

If the past few months have taught us anything, it’s that the end is never really the end.

When regulators announced they were backstopping deposits at Silicon Valley Bank, some viewed it as bringing stability to the market. It didn’t.  

When big banks pledged $30 billion to First Republic to calm nerves, it seemed like things would get better. They didn’t.

When the crisis went international and UBS was forced to acquire Credit Suisse, it appeared we’d seen the worst of it. We hadn’t.

When JPMorgan stepped up to buy a still-ailing First Republic, the world’s top banker, Jamie Dimon, deemed it the end of the crisis. (And he wasn’t the only one.) He was wrong.

The ink is barely dry on JPMorgan’s agreement with regulators and it seems more regional banks are feeling the pain. PacWest and Western Alliance both saw their shares slide considerably on Tuesday, Insider’s Morgan Chittum reports.

It’s not just investors that are skittish. Customers of regional banks are starting to ask questions about how safe their local lender is, the Financial Times reports.

And to be honest, I get it. While I might not agree with the sentiment, I understand why anyone banking with a regional player might start second-guessing that choice. 

Which begs the question: Will this crisis ever officially end?

First Republic’s failure and acquisition by JPMorgan could lead more American’s to reconsider their banking relationship and move money to a bigger bank. That, in turn, will lead to another bank failing, which will means even more American’s will reconsider their banking relationship and move money to a bigger bank.

And that’ll lead to…well, you get the idea.

Here’s more on how regional banks are still getting slammed despite JPMorgan’s Jamie Dimon calling an end to the bank crisis.

In other news:

Stefon Saturday Night Live


2. Fintech Finix wants to play with big dogs. The startup became a payments processor as it looks to compete with industry giants like FIS and Fiserv that dominate the space. Read more on CEO Richie Serna’s strategy.

3. Ain’t no fun when the rabbit’s got the gun. The king of corporate takeovers has some barbarians at his own gate. Short seller Hindenburg Research published a report on Carl Icahn’s holding company, Icahn Enterprises. Among the allegations: The firm has inflated asset valuations and runs like a Ponzi scheme. Icahn, for what it’s worth, dismissed the report. But that didn’t stop an old Wall Street rival from getting his shots in.

4. Here’s what some of the top execs in finance think about the Fed’s plan for rates. With the Federal Reserve set to announce what it’s going to do with interest rates, plenty of people have thoughts. Here’s what five executives at the famous Milken Institute Global Conference had to say on Fed policy.

5. Betting big on media, entertainment, and gaming. Alignment Growth just raised $360 million with plans to invest in everything from live experiences to a video game developer. More on why it’s so bullish on the space.

6. These are all the CEOs saying AI is going to wipe out jobs at their companies. From IBM to Amazon, leaders at some of the biggest companies have hinted at the impact AI will have on their workforce. Here’s what they’ve said so far on the topic.

7. Here’s what could happen if the US defaults on its debt. There’s been lots of talk about the US reaching its debt ceiling. So what does it all mean? If you’re a masochist, here’s the worst-case scenario.

8. When the Airbnb you book is not where you think it is. Here’s a wild story about a man whose home was caught up in a bait-and-switch Airbnb scam. And if you’re considering booking an Airbnb for your next vacation, here’s how to avoid some of the most common scams.

9. Put that wardrobe to use. Wondering what to do with those nice work clothes you never wear to the office anymore? (No offense, JPMorgan employees.) You can make some serious cash renting them out. Here’s how one woman made nearly $5,000 a month with the side hustle.

10. About the Hollywood writers’ strike. Writers Guild of America members are officially on strike. If you’re wondering what that means for your favorite shows and movies, here’s a rundown.

Curated by Dan DeFrancesco in New York. Feedback or tips? Email, tweet @dandefrancesco, or connect on LinkedIn. Edited by Jeffrey Cane (tweet @jeffrey_cane) in New York and Hallam Bullock (tweet @hallam_bullock) in London. 


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