"It's Spooky": Stanford Professor Warns Thousands Of US Banks Are "Potentially Insolvent" | ZeroHedge

"It's Spooky": Stanford Professor Warns Thousands Of US Banks Are "Potentially Insolvent" | ZeroHedge - BY TYLER DURDEN

• Following the collapse of First Republic last week, the meltdown of three other banks, and the Federal Reserve's quarter-point increase, making the tenth straight hike in an aggressive campaign to tame elevated inflation, a professor of finance at the Stanford Graduate School of Business presented a grim warning that the regional banking dominos are falling.
• In a New York Times opinion piece titled "Yes, You Should Be Worried About a Potential Bank Crisis. Here's Why," Professor Amit Seru wrote, "the fragility and collapse of several high-profile banks are most likely not an isolated phenomenon." He said, "A damaging combination of fast-rising interest rates, major changes in work patterns, and the potential of a recession could prompt a credit crunch not seen since the 2008 financial crisis."...

...Our latest note, featuring BofA strategist Michael Hartnett highlights that "every Fed tightening cycle ends in crisis", in this case US regional banks.

• Finally, the apocalyptic warning about the US banking system comes as JPMorgan CEO Jamie Dimon claims that "the system is very, very sound."