ANOTHER regional bank down big

Sector crisis could be just getting started ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ And now it’s getting serious. PacWest Bancorp (PACW) was down 52.49% in after-hours trading. Bloomberg reports that it could be the next bank to collapse. And this raises the question that we’ve discussed recently – is a regional bank "too big to fail" or "too small to care about?" The feds would undoubtedly prefer to dodge this question, but they may not have the luxury for much longer. With interest rates increasing, regional banks are going to be under additional strain. There’s no guarantee PACW will be the last one to face hard times. PacWest Bancorp is reportedly exploring a sale… and that might be one solution. Just make all banks "too big to fail." Of course, that piles on pressure on a federal government that is already struggling with debt and could be facing a default if things go completely haywire. Western Alliance Bancorp, Zions Bancorp, and Comerica were all down. The SPDR S&P Regional Banking ETF (KRE) was down 1.8%. But PacWest Bancorp looks like the weak link in the chain right now. The Fed did what was expected yesterday, raising interest rates by a quarter point. Yet Jerome Powell’s comments suggest that the central bank might go even farther. "Inflation pressures continue to run high," he said. "The process of getting inflation back down to 2% has a long way to go." He provided some cryptic comfort when he referred to the removal of a sentence in the Fed’s usual statement about rate hikes that said "some additional policy increases might be appropriate." Powell said that removal was "meaningful." But that might be the most we can get from him. The true question is whether interest rates are already so high that they will break regional banks. The answer may lie in the fate of PACW. It’s too early to say whether this bank is going down. Still, I feel confident in saying that if it goes down, it won’t be the last – and the American economy itself may follow. Keep Moving, Corey Snyder Publisher, Rogue Investing WORD ON THE STREET Fed Hike, PacWest Needs Help, Dimon Deposed - Fed Does The Expected - The Federal Reserve rose the benchmark interest rate by a quarter point, as expected. Federal Reserve Chair Jerome Powell hinted that the Fed may be done with the increases for now. "People did talk about pausing, but not so much at this meeting," he said. "We feel like we're getting closer or maybe even there." - Another Regional Bank Staggering - PacWest Bancorp was down by more than 52% in after-hours trading. PacWest leaders are reportedly considering a sale. Other regional banks shared in the decline - JPMorgan CEO Deposed For Jeffrey Epstein Lawsuit - On May 26 and 27, Jamie Dimon is scheduled to be deposed in New York in a lawsuit accusing JPMorgan Chase from benefitting from Jeffrey Epstein's activities. The bank has said all along that Dimon had no knowledge of anything that's relevant to the lawsuits. - Kremlin Attacked By Drones - Russia claimed Ukraine was behind a drone attack allegedly designed to kill President Vladimir Putin. Ukraine denied the charges. Former Russian president Dmitri Medvedev, who has become a notorious hawk, called for the "elimination" of President Volodymyr Zelenskyy in revenge. HOT SPOTS: What's Going on in Geopolitics - Iran Seizes Oil Tanker - The Iranian Revolutionary Guard seized an oil tanker with the Palestinian flag in the Strait of Hormuz. It's the second seizure by Iran in a week. The U.S. Navy's 5th Fleet said "Iran's actions are contrary to international law and disruptive to regional security and stability." - NATO Warns Of Russian Attacks On Pipelines – Assistant Secretary General for Intelligence and Security David Cattler warned that Russia posed "a significant risk that critical infrastructure in Europe and potentially North America could be targeted by Russia as part of its war on Ukraine." Undersea cables and pipelines are especially vulnerable, according to NATO. - Bolsonaro Accused Of Faking Vaccine Data - Brazilian police are reportedly investigating whether former president Jair Bolsonaro faked vaccine data in order to enter the United States. Bolsonaro says he was never vaccinated, but his visa must have shown that he was vaccinated for him to have successfully entered the United States in December. CUTTING EDGE: What[']( )s Happening In Tech - FDA Approves RSV Vaccine - GlaxoSmithKline (GSK) now has the first fully approved vaccine that targets respiratory syncytial virus (RSV). It represents a major victory for the company over Pfizer and Moderna, who were also trying to develop such a vaccine. - Google CEO Blasted For Pay Increase – Alphabet is cutting jobs, with about 12,000 on the chopping block. However, Google CEO Sundar Pichai is having a great year, getting a $218 million stock award on top of his $8 million in other compensation in. Some employees are trashing the CEO in the press in response - a blow to Google's cultivated progressive image. - Musk Cuts Twitter Down To Almost 1,000 Employees - Even after Jack Dorsey turned on him, Elon Musk is not backing away from his quest to make Twitter profitable. Business Insider reports sources said the workforce is now well below 1,500 people. 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