I’ve been following this bank closely. They’ll be bailed out because they bought Signature Bank which has exacerbated their financial position.
I think all banks will be bailed out if required. I also think that the market overreacted to the increased regulatory burden as a result of acquiring some Signature assets. The risk is with loan defaults and the type of loans they have issued and if jittery depositors walk before the regulators can offer assistance. So it's not all upside.
Also, a class action brought against management has been started for failing to disclose loan losses and dividend reductions.
