Problems in the U.S. banking system have reappeared.
The New York Community Bank of the United States was 46% intraday, and the problems of the U.S. banking system reappeared. On January 31, 2024, the New York Community Bank of the United States announced that its results fell significantly short of expectations, and its stock price was **46% intraday. U.S. KBW Regional Bank Index**6%.
The U.S. Regional Bank of New York, which acquired Signature Bank in 2023, made a large provision in the fourth quarter due to problems with two commercial real estate loans, and there was a 2A loss of $5.2 billion versus a consensus of $200 million.
Commercial real estate in the U.S. has always been a problem, especially in the New York area, where banks that hold commercial real estate are caught up in it, and commercial real estate problems alone are not a big deal. However, the Fed's BTFP program to bail out small and medium-sized banks will expire on March 11, and small and medium-sized banks will face greater challenges at that time.
Will there be a repeat of the continuous problems of small and medium-sized banks in the United States in 2023 this year, which will make the market tense its nerves? Probably, the Fed won't fall to two more places in one place, and the Fed's bailout program may be automatically renewed. However, the problems of commercial real estate in the United States may affect the performance of small and medium-sized banks, and it is very likely that the Fed's interest rate cut window will suddenly appear in March.