Email of the day on getting the bad news out on a Friday
Collapses of Large Banks on Fridays:
- Friday, Mar. 14, 2008: Bear Stearns hit by liquidity crisis
- Friday, Sept. 12, 2008: Last trading day before Lehman Brothers declares bankruptcy
- Friday, Sept. 26, 2008: Washington Mutual seized by regulators marking largest bank collapse in US history
- Friday, Mar. 10, 2023: SVB seized by regulators, marking 2nd biggest bank failure in US history
- Friday, Mar. 10, 2023: Signature Bank sees $10 billion in withdrawals, seized by regulators 2 days later
- Friday, Mar. 17, 2023: UBS bids for Credit Suisse, $CS, to avoid its collapse
- Friday, Mar. 24, 2023: Deutsche Bank, $DB, credit default swaps hit 4-year high on contagion fears
Just about every large bank failure in recent history has occurred on a Friday.
This can't be a coincidence.
Giving regulators time to make an announcement over the weekend helps to avert market panic. That’s as good a reason as any to announce bad news as close to the market close as possible on a Friday.Click HERE to subscribe to Fuller Treacy Money Back to top