You Can't Control the Banking Meltdown, but You Can Control What You Do About It
Banks are supposed to be boring, but they are anything but that in 2023. At this point, there's no way to pick which of the smaller banks, if any, are heading down next, with wild price gyrations showing up on a daily basis. The way to handle this tense environment is to take a safety-first approach.
The key to understanding today's banking crisis is to look at the business models behind the trio of midsize bank failures.
One bank was servicing the cryptocurrency industry, a high-risk and high-volatility niche. Another focused on servicing young tech companies, another high-risk area. And the latest failure, First Republic, courted high-net-worth customers who could most easily move their money to another bank. In other words, each had inherent risk in their business approach.
Source Fool.com