Part 6/10:
While regulators and large banks like JP Morgan have shown resilience, concerns remain. JP Morgan, for example, reports nearly $48 billion in unrealized losses, though its larger asset base affords it more cushion than SVB. Still, the possibility of contagion persists amid rising fears and deposit withdrawals.
Historical parallels such as Lehman Brothers’ collapse in 2008—a day that marked the beginning of a global financial meltdown—are frequently invoked. Yet, it’s crucial to note differences: Lehman was an investment bank with vastly higher leverage, while traditional commercial banks are more constrained. Nonetheless, the recent revelations underscore that even well-established banks are not immune to certain risks.