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A comment on The 'white-collar bloodbath' is all part of the AI hype machine. Parent comment

Re:The 'white-collar bloodbath' is all part of the AI hype m... by harmmonica on Saturday May 31, 2025 @02:53PM (#44146253)
Can you expand on "probably in rural America"? Do you just mean that those smaller community banks are more at risk if rates rise? If so, because they issue more variable rate debt? Or is there something else?

edit: grammar

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Re:The 'white-collar bloodbath' is all part of the AI hype m... by JumpCrisscross on Saturday May 31, 2025 @06:00PM (#44147210)
> Do you just mean that those smaller community banks are more at risk if rates rise? If so, because they issue more variable rate debt? Or is there something else?

Current issue is community banks have 3x the commercial real estate exposure of other banks [1]. They're also less liquid and have a lower ROA. So in cases where the shock comes from outside the financial sector, they tend to be the first we worry about.

[1] https://www.fdic.gov/quarterly-banking-profile 33% vs 11% of total assets

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