I neglected to include the looming concerns regarding banks exposures to commercial real estate loans and mortgages (particularly in the office space sector) in cities such as Seattle, LA,Chicago, NY, and SF. These cities are still experiencing occupancy rates of between 30-50%.
Consequently a significant number of these loans are materially underwater and will ultimately require restructuring or be defaulted upon.
Either way these are big numbers and will likely hit the big banks. I think this will weigh on any upside in the bank sector until some end is in sight which will likely take the balance of this interest rate cycle.
Sorry to be all doom and gloom.