Deposit-Based Bailout Is “Bad Policy” – Regional Banks Continue Slump After Ackman Warns Of “False Sense Of Confidence”

For a few brief hours yesterday, some market participants breathed a sigh of relief as the ‘big banks’ threw $30 billion of deposits to the ‘small banks’ (specifically First Republic Bank) and saved the world.

This morning, despite a surprise RRR cut from the Chinese, reality is setting in with FRC -20%, PacWest -10% and the rest of the sector sliding fast…