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SVB fallout. Lehman moment? Trading in First Republic, Signature Bank, other regional banks halted after SVB collapse
Businessline ^ | March 12th, 2023 | By Palak Shah

Posted on 03/12/2023 4:20:59 PM PDT by Mariner

In what could bring back the memories of the 2008 Lehman Brothers fall for the global stock markets, trading in a number of regional US banks was halted on Friday amid a massive sell-off. Some of the affected regional US banks are First Republic, Signature Bank, PacWest Bancorp and Western Alliance Bancorp.

Share price of First Republic declined nearly 50 percent, while PacWest Bancorp and Western Alliance Bancorp lost over 30 percent each. The stock price of Signature Bank fell about 25 percent. However, among the major banks, JPMorgan gained 1 per cent, while Citigroup and Morgan Stanley were down about 1.5 percent each. Bank of America and Wells Fargo were down nearly 2 per cent each.

The mayhem in the US’ regional banking sector has started at the beginning of the week.

Panic engulfed the markets on Tuesday when KeyCorp, which sells retail and commercial loans through subsidiaries, warned of elevated risks due to tightening US interest rates and lowered its full year guidance. This was followed by crypto focused bank Silvergate announcing liquidation due to the collapse of crypto exchange FTX in the US. The final straw that sent the global stock markets into a tailspin was the fall of Silicon Valley Bank (SVB). SVB’s share price crashed nearly 60 percent on Thursday.

(Excerpt) Read more at thehindubusinessline.com ...


TOPICS: Business/Economy; Front Page News; Government; News/Current Events
KEYWORDS: regionalbanks; svb
Awash in overvalued assets worth little more than half their original cost, few institutions today would survive a mark-to-market audit.

If any.

Fed says: No more Quantitative Tightening for you!

Abject surrender.

1 posted on 03/12/2023 4:20:59 PM PDT by Mariner
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To: Mariner

Yellen saying all depositors will be covered and it wont be taxpayer money. Not sure what they have done to cover it.


2 posted on 03/12/2023 4:21:55 PM PDT by RummyChick
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To: Mariner

The Amish fighting again?


3 posted on 03/12/2023 4:22:58 PM PDT by nikos1121
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To: RummyChick

Become the 2023 version of LBJ and the printing machine ........


4 posted on 03/12/2023 4:23:04 PM PDT by Hambone 1934 (Dems love playing Nazis.....The republicans love helping them)
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To: Mariner

Notice that it was the post 2008 Congress that banned mark to market audits of banks.

They own this.


5 posted on 03/12/2023 4:25:25 PM PDT by cgbg (Claiming that laws and regs that limit “hate speech” stop freedom of speech is “hate speech”.)
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To: Mariner

Signature Bank “canceled” President Trump in the wake of January 6, 2021 and closed his accounts. Good riddance.


6 posted on 03/12/2023 4:25:30 PM PDT by Mozzafiato
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To: RummyChick

They are opening the Fed window to banks that need cash.

I wish the local casinos would do that for me!


7 posted on 03/12/2023 4:26:36 PM PDT by cgbg (Claiming that laws and regs that limit “hate speech” stop freedom of speech is “hate speech”.)
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To: Mariner

“...memories of the 2008 Lehman Brothers fall...”

All I can say is that that certainly screwed up the relative Utopia of Moonlight Basin in SW Montana.

America has not been the same since.


8 posted on 03/12/2023 4:28:55 PM PDT by Paladin2
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To: Mariner

Glad I no longer have money in First Republic. Lots of people are saying things will be fine as long as the public doesn’t panic and cause bank runs. However... if you have money in problem institutions wouldn’t you run and get your money to safer places? I’ll be pulling some money out of Charles Schwab on Monday, and putting it in safer places. Banked money from stock sales and purchases. Keep calm, and panic.


9 posted on 03/12/2023 4:33:47 PM PDT by roadcat
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To: Mariner

DOW tomorrow should be very interesting


10 posted on 03/12/2023 4:35:41 PM PDT by ridesthemiles
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To: RummyChick

“it wont be taxpayer money”

Yeah, that’s the ticket!


11 posted on 03/12/2023 4:49:56 PM PDT by dynachrome (“We cannot save Ukraine by dooming the US economy.” Rand Paul)
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To: ridesthemiles

Dow Futures up 265 points at the moment.


12 posted on 03/12/2023 4:59:26 PM PDT by chuck allen
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To: chuck allen

The Working Group on Markets, sometimes known as the Plunge Protection Team or PTT, rides to the rescue!


13 posted on 03/12/2023 5:01:10 PM PDT by Publius
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To: Mariner

Jim Cramer said SVB was a good investment not too long ago. How could such a genius be so wrong?


14 posted on 03/12/2023 5:25:46 PM PDT by frogjerk (More people have died trusting the government than not trusting the government.)
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To: ridesthemiles
DOW tomorrow should be very interesting

DOW tomorrow should be very interesting

15 posted on 03/12/2023 5:35:21 PM PDT by gunsequalfreedom (ui)
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