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Arthur Hayes is bearish on bank stocks again, Charlie Munger warns of banks' bad commercial real estate loans.

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Arthur Hayes is bearish on bank stocks again, Charlie Munger warns of banks

The U.S. banking crisis is far from over. Following the acquisition of First Republic Bank by JPMorgan Chase last weekend, several small banks are still in crisis. BitMex co-founder Arthur Hayes has been buying a large number of put options in preparation for a harvest, while investment guru Charlie Munger, who has repeatedly intervened to rescue U.S. banks, has warned about the banks' non-performing commercial real estate loans.

Arthur Shorts U.S. Bank Stocks

After accurately predicting the takeover of First Republic Bank before the weekend, BitMEX co-founder Arthur Hayes has made a new prophecy. He said he is seeking more troubled U.S. bank stocks to profit from buying put options.

He claimed that whether the government prints money to bail out banks during the crisis or ignores bank bankruptcies leading to depositors being affected, it will only amplify the problems with traditional banks. This uncertainty will continue to drive up assets such as gold and Bitcoin.

Interestingly, netizens left comments under Arthur Hayes' tweet mentioning @PEPE, indicating that the meme coin PEPE trend is still strong.

For more information on the meme coin PEPE, please see: Ethereum Gas Fees Remain High, Culprit Identified! Meme Coins Are the Main Suspects

U.S. Bank Stocks Continue to Decline

Following the collapse or takeover of Silvergate Bank, Signature Bank, Silicon Valley Bank, and First Republic Bank, U.S. small bank stocks are still facing a crisis of confidence. Pacific Western Bank PacWest Bancorp PACW has fallen by 42% in a week, further plummeting by 45.48% in pre-market trading today, with a stock price of only $3.5.

Image Source: CNBC

Western Alliance Bank WAL has also dropped by 22% in a week, with a further 19.41% decline in pre-market trading today, with a stock price of only $23.83.

Image Source: CNBC

Arthur Hayes stated that he has purchased put options with a strike price of $20, preparing to profit when Western Alliance Bank falls below $20 by the weekend, giving him room for profit, and then starting a new round of trading next week.

Charlie Munger Warns of Bad Commercial Real Estate Loans at Banks

Charlie Munger, Warren Buffett's partner and vice chairman of Berkshire Hathaway, recently stated in an interview with the Financial Times:

The U.S. commercial real estate market is brewing a storm, with falling real estate prices leading U.S. banks to be filled with so-called "bad debts."

Berkshire Hathaway has long supported U.S. banks during financial turmoil. During the 2007-08 financial crisis, Berkshire invested $5 billion in Goldman Sachs, and in 2011, a similar amount was invested in Bank of America. However, with banks collapsing or being taken over this year, Berkshire has been cautious due to the potential risks in the banks' massive commercial real estate loan portfolios.

Munger pointed out:

Many office buildings and shopping centers are in trouble. Banks have stopped providing loans to commercial developers. Compared to six months ago, every bank has tightened its real estate lending significantly.