The MBS bit is definitely a factor, I would wager the overnight rate is a bigger factor given the timing of the collapse... I would also have to guess that the

The MBS bit is definitely a factor, I would wager the overnight rate is a bigger factor given the timing of the collapse... I would also have to guess that the bankruptcies of some smaller businesses is having an impact on the regional banks. A small mom and pop store, to me, is more likely to use a regional bank than a big one, and there are businesses around me in that category slowly/quietly disappearing... It is a very slow burn, sadly I fear that this is about the rate of burn the fed is hoping for and we won't see it end until either they are happy or it starts to spiral out of control.