According to The Kobeissi Letter, regional bank stress resurfaced as Zions Bancorp (ZION) fell 13% after disclosing a $50 million loan charge-off underwritten by a subsidiary, and Western Alliance Bank (WAL) dropped 12% after stating a borrower failed to provide first-position collateral (source: The Kobeissi Letter). According to The Kobeissi Letter, the March 2023 crisis response—government backstops and large-bank acquisitions—created an implicit guarantee for deposits above the $250,000 FDIC cap and incentivized outsized risk-taking (source: The Kobeissi Letter). According to The Kobeissi Letter, confidence in the regional banking system was never fully restored, so declines in regional bank stocks can drag the broader market lower (source: The Kobeissi Letter). According to The Kobeissi Letter, that risk-off dynamic can pressure high-beta assets, including crypto, making the banking selloff relevant for traders across equities and digital assets (source: The Kobeissi Letter).