![]() ![]() "So far, it seems that the potential problem banks are few, and importantly do not extend to the so-called systemically important banks," analysts at ING said. JPMorgan Chase fell 1.8%, and Bank of America dropped 5.8%. Huge banks, which have been repeatedly stress-tested by regulators following the 2008 financial crisis, were not down as much. ![]() Shares of First Republic Bank fell 61.8%, even after the bank said on Sunday it had strengthened its finances with cash from the Federal Reserve and JPMorgan Chase. The most pressure is on the regional banks a few steps below in size of the massive, "too-big-to-fail" banks that helped take down the economy in 20. The US government announced a plan late on Sunday meant to shore up confidence in the banking industry following the collapses of Silicon Valley Bank and Signature Bank since Friday. Investors are worried that a relentless rise in interest rates meant to get inflation under control are approaching a tipping point and may be cracking the banking system. The sharpest drops again came from banks and other financial companies. The Dow Jones Industrial Average fell 90 points, or 0.3%, while the Nasdaq composite rose 0.4%. The S&P 500 dipped 0.2% after whipsaw trading, where it careened from an early loss of 1.4% to a midday gain of nearly that much. Silicon Valley Bank's sudden collapse - the second-largest ever by a US bank - struck on Friday when investors frantically started withdrawing funds amid fears the bank could no longer keep pace with the Fed's rate hikes.īut many other stocks rose on hopes the bloodletting will force the Federal Reserve to take it easier on the hikes to interest rates that are shaking Wall Street and the economy. The worst affected regional banks in the US were First Republic which fell by 62 percent, Western Alliance which closed with a loss of 47 percent and Ke圜orp which dropped by 21 percent.īank stocks tumbled on Monday over worries about what might be next to break, following the second and third largest bank failures in US history. Yesterday, Spain's Santander and Germany's Commerzbank saw their share prices dive by more than 10% at one point. Japan's Topix Banks index falling by more than 7%, putting it on course for its worst day in more than three years. “It generally means that small banks will actually lose a lot of deposits and the bigger banks will get stronger.” “All our UK banks were down between 4 and 5%. “First republic bank down 61% - it just goes to show how contagion catches on. ![]() “Wells Fargo down 7%, Citibank down 7.5%, Bank of America down 5%. Read more: Government wins crunch vote on controversial small boats bill despite backbench backlashīank shares in Asia and Europe have now slumped as well, with Tuesday trading seeing sharp falls in share prices globally.Īnalyst David Buik told LBC this morning: “We saw some pretty horrible stuff yesterday. Read more: Rishi Sunak strikes multi-billion-pound submarine deal with US and Australia amid growing threat from China ![]()
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