President Biden's Assurances That The US Banking Is Safe Is Not Convincing The Markets

 

Daily Mail: Trading temporarily HALTED in dozens of banks after shares fell by up to 75% when market opened at 9.30am - moments after Biden said 'US banking is safe' - as contagion spreads to heavyweights Wells Fargo, Bank of America and JP Morgan 

* Western Alliance Bancorp's stock price dropped by three quarters, First Republic Bank dived 67 percent and PacWest Bancorp plunged more than 35 percent

* Major US banks were also hit: Wells Fargo down 7.5 percent, Bank of America 7.4 percent, Citigroup 5.8 percent and JP Morgan 2.7 percent 

* Biden attempted to shore up trust just minutes before the market opened, telling reporters: 'Americans can have confidence that the banking system is safe' 

Trading was temporarily halted in dozens of regional banks this morning as shares fell by up to 75 percent when the market opened after Joe Biden claimed 'US banking is safe.' 

Major US banks were also hit as contagion fears spread through the sector 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. 

Regional bank Western Alliance saw its stock price plunge by three quarters as the opening bell sounded on Wall Street, while shares in First Republic dived 67 percent and PacWest by more than 35 percent. 

Trading circuit breakers were swiftly implemented to protect the market from rampant volatility.

Read more .... 

Update: Bank stocks tumble; others rise on hopes for easier rates (AP) 

WNU Editor: It looks like more banks are on the verge of closing .... First Republic leads losses among U.S. regional banks on contagion fears (Reuters). More here .... First Republic drops 60%, leads decline in bank stocks despite government’s backstop of SVB (CNBC), and here .... US Regional Banks Remain Under Pressure as First Republic Sinks (Bloomberg). 

Update #2: It looks like the crisis is spreading overseas .... Credit Suisse CDS Hits Record High As Silicon Valley Banking Crisis Spreads To Europe (Zero Hedge).



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