Thoughtful post, The low price of the preferred shares reflects the extreme bearishness on FRC. Back in 2008, there were a ton of financial preferred shares that traded down to single digits. Those that survived recovered above $20.

These securities were created for the retail investor and were issued at $25 par value.

What to look for to see a regional bank rally?

Focus on interest rates, lower rates cure a lot of problems. Unlike 2008, it's not an issue of credit quality, at least not yet.

Will the regulators offer any relief in the form of higher FDIC guarantee limits? There has been some talk of increased regulation of the regional banks to insure their soundness. Increased regulation could be offered along with an implicit guarantee of the regionals. Long-term this will hurt regional banks ability to lend.

Will the Biden Administration allow big banks to buy regionals? Watch First Horizon/TD Bank merger in the next few months.