Posted on 03/13/2023 7:51:03 AM PDT by Red Badger
Shares in Western Alliance Bancorp are getting hammered as smaller lenders come under pressure after the failure of Silicon Valley Bank.
The Arizona-based bank's stock plunged 83% to $7.84 on Monday, following a 21% slide on Friday.
US regional banks have fallen victim to SVB's sudden meltdown, with First Republic Bank shares tumbling 78% and PacWest Bancorp down 53% on Monday.
That poor showing comes despite efforts to ease investor concerns that other banks would be hit by the same problems suffered by SVB. On Sunday, Signature Bank became the third lender to shut its doors in the space of a week, after crypto-friendly bank Silvergate closed voluntarily.
On Friday, SVB was closed by regulators and put under the control of The Federal Deposit Insurance Corporation after That followed a tumultuous few days for SVB, which saw a call for capital fail and a rush of depositors withdrawing their funds.
(Excerpt) Read more at markets.businessinsider.com ...
Snowball rolling down the hill.
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Live Bank Stocks Price Crash - LIVE Breaking News Coverage (First Republic Bank, Western Alliance & More)
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Coordinated shorting. One at a time. Uncontrollable.
Not to worry. As long as the taxpayer has two pennies to rub together there are two pennies the government will seize to give to any failed bank or politically connected corporation.
Thanks for posting this news. Much appreciated.
There are literally dozens of trading halts yet the market is still up?
Per usual, you’ve got to go to the UK papers for a full take:
Better site:
https://www.nasdaqtrader.com/Trader.aspx?id=TradeHalts
Massive numbers of halts on just NASDAQ.
Notice they only halt trading when stocks go down.
They never halt trading when stocks go up.
Lotta banks.
What’s really interesting is that the government seems to have pressured one big cryto-friendly bank into ‘voluntarily’ closing and forced another big one to close. One has to wonder if that’s an odd coincidence or (more likely) intentional since FedGov is getting increasingly interested in tracking money...
At the risk of sounding financially illiterate, is this amount of trading halts on banks extraordinary and alarming for the system as a whole here?
Do you reckon there is potential for much more volatility today and in coming days?
I bet the Robinhooders are crowing loudly today.
Yes
People are starting to look under the hood….
Instead of an engine..they are finding a galley crew of tired squirrels.
If you stop the losers from losing, only the winners are reflected.
My take, FWIW, is that the smaller regional banks will be taken over by the big boys, like BOA, leaving a smaller number of consolidated banks. The feds will control these easier. Easier to install digital currency, also?
IMHO the Dow Jones no longer represents the market as a whole. It consists of 30 cherry-picked companies to represent "the market". The S&P 500 is up today IMHO for two reason: it tanked bigly Friday and, thus, has a tendency for some rebound today even if today is more bad news. Plus, there's "good" news for large banks in the sense that the bad news from Friday tends to be just small banks. Thus, the largest 500 companies may be okay.
Last but not least is the Federal Reserve has the Bizarro effect on the market: overall bad news means the Fed is liable to slack off on its rate hiking, which means the Fed might not tank the stock market. With the Fed: good news is bad news, and bad news is good news.
IMHO that's the market sentiment. But I'm staying out of equities for a while anyway.
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