Written by Bryan Lutz, Editor at Dollarcollapse.com:

Powell increased rates by .25% setting the stage for 3 more banks to shatter. Rate hikes were  expected by many traders based on projections set by the FOMC in January. Yet, traders are weary because three more banks, mainly PacWest Bancorp, are looking just as weak as SVB. Powell doesn’t seem to note.

For one, Powell and the White House are saying the alternative of what’s actually happening. Three US Banks have collapsed this yr. The Recent York Post notes:

The three US banks that collapsed this yr — First Republic, Silicon Valley Bank and Signature Bank of Recent York — had more combined assets under management than all 25 federally insured lenders that failed in 2008 on the onset of the Great Recession.

When Powell and the FOMC take notice they are saying, “…conditions in that sector have broadly improved since early March. And the US banking system is sound and resilient.”

Perception can only be managed a lot by short term intervention and a podium.

It’s clear that PacWest needs capital. In its First Quarter Earnings call management made their plan clear. They should dump $2.7 Billion Lender Financing to maintain themselves in the sport. In other words, they got to sell to pay their debts. They’ll be paying greater than debt though. The FDIC recently announced its plan to shore up their reserves by slapping fees on Big Banks. With $20 Billion in outflow to save lots of the now collapsed SVB, the FDIC desires to extract that cash from those it’s suppose to be protecting.

Reuters reports:

The U.S. Federal Deposit Insurance Corporation is planning to exempt smaller lenders from kicking in extra cash to replenish the federal government’s bedrock deposit insurance fund, and as an alternative saddle the largest banks with much of the bill.

In accordance with the FDIC, banks with under $10 Billion in assets won’t be hit. That’s too bad since PacWest is carrying $28 Billion in assets. Perhaps I’m unsuitable and the fees will pound the banks with minimal damage. And possibly the now 5.25% federal fund rate fees won’t effect them that much. In any case, Cramer says Western Alliance bank #2 is “back and stronger than ever!!”

There’s one other Cramer call for you. On May 3, Western Alliance Bank fell one other 25%…

In accordance with the FT report earlier this yr, Western Alliance Bank was cited to have “hired advisers to explore its options, the people said, adding that the bank’s deliberations were at an early stage and may not come to anything.” The conclusion was that they were seeking to sell.

Metropolitan Bank also plunged 24% yesterday. The bank’s CEO took out a $7.5 Million dollar loan, which the bank’s now taking back. Yet the corporate doesn’t appear to be recovering.

Individuals are watching these banks and the stones aren’t coming from “bad optics” or “poor perception”. They’re coming from the banks themselves. They threw the stones an extended time ago after they decided to make the most of endlessly free fiat money. In accordance with a recent study, over 180 banks are looking fragile, and much more are silently insolvent. I’ll leave you with a recent video from Bob Moriarty on the cascade of banks set to shatter…