Having to be bailed out by over £50 million, even though they have £9 million net capital. Looking at their balance sheet it looks like the “available for sale securities” were the main problem:
Meanwhile elsewhere someone is promoting the KBE small bank ETF. Lots of shorts in position for more failures. Share price is trending upward. Could be a short squeeze.
You wonder who is right? Rising interest rates mean banks must increase rates they pay to keep from losing deposits. Loans outstanding are mostly fixed rate. Profits are squeezed.
But didn’t they just do a stress test for mid sized banks. Did the Heartland Bank pass the stress test?
Banks somewhere must be failing all the time. Are rates of failure rising? Or steady?