FRB has stabilized on their current market price. Yet it does not match what they are valued at. FRB is a stable bank with enough deposits to cover any event. You also have the Fed rumored to make sure in-any case that they will guarantee deposits in case there is a run.
What will happen is:
- A buyout by one of the top 20 banks to have a cheap acquisition for growth
- They continue as they always have and recover the stock price
I don't see any possibility for them to “fail”. After SVB, investors are spooked but this is not the same situation. I think retail investors have the ability here to make a lot of money.
Check back in 60 days to this post and see if I was right.
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