Ackman Says Regional Bank Stocks an 'Incredible Bargain' Now
Comment of the Day

March 13 2023

Commentary by Eoin Treacy

Ackman Says Regional Bank Stocks an 'Incredible Bargain' Now

This article from Bloomberg may be of interest to subscribers. Here is a section: 

Pershing Square Capital Management’s Bill Ackman said that regional bank stocks are an “incredible bargain” right now as long as the government does the “right thing.”

The trade is not without real risk but offers “very attractive asymmetry,” he said in a tweet, adding that a decline in rates makes this an even better investment. 

The turmoil that has hit bank stocks deepened on Monday with regional banks hit the hardest as the KBW Regional Banking Index sank as much as 12%. That is the sharpest intraday drop since March 2020. 

Eoin Treacy's view

The clear conclusion from the announcements over the weekend is that all deposits are now insured. President Biden said in this morning’s press conference that the FDIC will absorb the costs. That implies much higher fees for the mid-sized banking sector in future. However, it also suggests bank runs will be avoided and the majority will survive and possibly thrive. 

Click HERE to subscribe to Fuller Treacy Money Back to top