Earlier this week, the ECB's Nagel was taking a premature victory lap and touting a resilient eurozone banking system and low contagion risks. I warned the comments "could blow up in his face in short order".

It was even shorter than I imagined. Yesterday, shares of Deutsche Bank fell 6% in US trading, today they're down another 10.6%.


Part of what Nagel (and others) were doing was a bluff to inspire confidence because banking is always about confidence but they also gave the impression that no help was coming.

Over in the US, the bleeding continues as well with the KRE regional bank ETF down 1.9% premarket and S&P 500 futures off by 0.9%.