New Bull Market for Regional Banks? Not So Fast

Commentar y For the past six weeks, the market rally has lifted most sectors out of some very bearish downtrends, the financials being one of them. While there is a base case for wanting to own bank stocks—such as a more constructive outlook for the economy, and lower interest rates—there are some major hurdles facing the regional banks that must be cleared out before this sector can be on long-term sound footing. I’ve itemized below what I believe are areas of current and future stress facing the banking sector: Regional banks have seen hundreds of billions of dollars in customer deposits flow out of their accounts and into money…