RE:A few pointsGood points!!
Couple of thoughts..
Instant dissemination of news is here to stay and if anything will get faster and more widspread as time goes on so there is really nothing that can be done about that..
On the regulation side, as I mentioned many times before, there has been a clear pattern of lack of regulation in the financial services industry and I can say that as someone who "was there". IMO, Dodd Frank was a good bill and it was passed in the US in a bipartisan way which is a good thing. The problem with Dodd Frank was that there wasn't enough money in the Bill to provide the money and people to enforce a complex set of regulations and a lot of it was left to the industry to self-regulate.
The problem with self regulation is that the firms in the industry have a conflict of interest between enforcing the rules and making a few extra bucks. Guess who will win that battle most of the time?
The other aspect of this was that fines for those who did actually get caught where so small to the firms (might seem like a lot of money to regular folks) that it was really just a cost of "doing business". In many cases, the fine was much less than money made for committing "the sin" and so there was an inventive to play fast and loose with the rules.
In the case of SVB, when you combine all the points above with the BOD being politically connected then you get even less regulatory oversight resulting in what we saw happen.
As investors in general the trick is to simply go with the flow and don't fight the tape. In my case, I bought more banks stocks on sale and since oil got hit as well, I bought a small position in oils as a trading position. If the banks aren't finished going down then I will buy more at a deeper discount to what they are worth.