While I doubt that the issue of the market caps of banks is on most people's minds, we must be aware that bank stocks have plummeted over the last few weeks, perhaps driven mainly by short-interest holders trying to take advantage of the few bank failures that have taken place over the past few weeks.
Our community needs to know two things:
Entrepreneurs need a vibrant banking ecosystem with competition and a relationship focus to succeed. If the shorts have their way, the banking industry will become like the airline industry. If you want this to happen, go short a small bank stock! And if you believe in a healthy banking system, buy some bank stocks today.
Banks are open for business despite the tumultuous stock environment, making loans and managing deposits.
A recent interesting article in The Street talks about potentially fraudulent activity amongst a lot of the short activity. It will be interesting to see how this story unfolds.
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