Just Asking – Why A Tuesday?
So usually banks in trouble that need to be merged or taken over happen on a Friday. In some cases a Monday morning before the market opens after a weekend deal is arranged. So why the Tuesday deal for these two CA banks? This is a longshot and not a prediction, BUT, if the FED has finally come to their senses and decided to NOT raise rates tomorrow, they need a cover story so as to not shock the market and cause a panic.(unless that is what they want to do?) If another bank merger gets announced before tomorrow’s rate decision, beside this one today, or there is some other negative macro issue they can get out there before 2PM, maybe they just do nothing. They already paused in June and 25 basis points doesn’t mean spit one way or the other. If they wanted to keep to their lame mantra about inflation and the numbers pick up again, they can always raise again in Sept. instead. It probably won’t happen, but nothing this FED and Biden administration do makes any sense anyway, why start now?