Posted on 03/14/2023 8:23:42 AM PDT by EBH
More than $100bn has been wiped off US banks’ value as the collapse of Silicon Valley Bank continues to send shockwaves throughout Wall St.
Trading was temporarily halted in dozens of regional banks this morning as shares fell by up to 75 percent, despite Joe Biden’s assurances that ‘US banking is safe.’
Major US banks were also affected by the crash as fear spread throughout the market, with Wells Fargo plummeting 7.5 percent, Bank of America falling 7.4 percent, Citigroup plunging 5.8 percent and JP Morgan down 2.7 percent.
US President Joe Biden insisted that the system was safe after the second and third largest bank failures in the nation’s history happened in the span of 48 hours. In response to the crisis, regulators guaranteed all deposits at the two banks and created a programme that effectively threw a lifeline to other banks to shield them from a run on deposits.
‘Your deposits will be there when you need them,’ Mr Biden told the public, seeking to project calm.
He also said the banking executives responsible for the failures would be held accountable.
Despite the message from the White House, investors broadly dumped shares in bank stocks.
Shares of First Republic Bank closed down more than 60% even after the bank said it was taking emergency funding from the Federal Reserve and additional money from JPMorgan Chase.
Shares in KeyCorp and Comerica plunged by nearly a third. The stock of well-known franchises such as Charles Schwab, Fifth Third Bank, Truist and Huntington Bancshares all dropped by double digits.
The sell-off happened in part because the country woke up to a new banking system and investors had to find the winners and losers, banking experts said.
(Excerpt) Read more at msn.com ...
Well, they needed to suck some $$$$$ out of the economy...right?
Talking about holding someone accountable...
We have Joe Biden-Jong Un in charge.
That’s gonna leave a mark on the options these guys get every year.
They are deliberately setting us up for digital currency and its utopian dream
LOL!
I do not think this was supposed to happen so soon.
This event actually broke the back of the system. We are now in the freefall. 6 months from now life is going to look very different.
Actually it might be good especially if it costs some very rich people.
So far today, the stock market is not bothered by the latest events in the banking sector. SMH.
It’s only taxpayer money. They will cover it.
IMHO that's because the S&P 500 is already down over 17% from its ATH (all time high). Historically in bear markets, the S&P 500 jumps wildly on daily news when it's at a high, but not so much when it's on a general down trend (bear market).
The other reason is the Federal Reserve's mirror effect on the market. When the Fed is saying they're gonna hike rates more (which typically lowers the market), any bad news is often received as good news because bad news means the Fed is liable to slow down how much it hikes (or maybe not hike for a while). Basically, the Fed makes bad news good news, and good news is bad news.
Don’t worry. Jo Jo the Pedo says he and his sonny boy have it covered. Chump change to them.
It is a dead cat...
It also shows the sheer ignorance of the markets.
msn article looks like it was written by AI ... almost all of what it referred to happened on 3/13/2023 without making that clear
however, some bank stocks were indeed temporarily halted today, tuesday, 3/14/2023:
https://www.newsweek.com/bank-share-trading-halted-again-fears-collapse-deepend-1787706
https://www.nasdaqtrader.com/trader.aspx?id=tradehalts
“‘Your deposits will be there when you need them,’ Mr Biden told the public
Sure, they’ll just be worth 1/100 of what they were when you deposited them, because we’re going to inflate our way out of any bank collapses.
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