Fed and Treasury won't come to the rescue

Completing the second week of market routs evoked by banks in trouble, a quick take would be: 1. While the U.S. Federal Reserve (Fed) almost exactly copied what the European Central Bank (ECB) did last week, the market responded much more friendly to the ECB than to the Fed. 2. European banking troubles seem to have peaked for now as UBS’s takeover of Credit Suisse is considered a success, at least from a market perspective. In the U.S., however, problems of (regional) banks (shrinking deposits, the cheapest form of funding) seem anything but fixed. Half of the banks from the KBW Bank...