For a few brief hours yesterday, some market participants breathed a sigh of relief as the 'big banks' threw $30 billion of deposits to the 'small banks' (specifically First Republic Bank) and saved the world.

This morning, despite a surprise RRR cut from the Chinese, reality is setting in with FRC -20%, PacWest -10% and the rest of the sector sliding fast...

Goldman notes that retail is starting to participate in this: Obviously a massive uptick in volumes across the regional banks... but it's also become a retail hunting ground this past week. FRC topped the "most actively traded names" on Fidelity today. Are these the new AMCs and GMEs?

The problem, that Pershing Square's Bill Ackman highlighted in a tweet is simple: "spreading the risk of financial contagion to achieve "a false sense of confidence" in First Republic Bank is "bad policy".

He has a point - if this 'plan' was working' why are all the regional banks still down so hard post-SVB?