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Bank stocks dive.

 

Global index
Investors have wiped nearly half a tril­lion dol­lars from the value of bank shares around the world in the worst rout for the fin­an­cial sec­tor since the onset of the Covid-19 pan­demic.

Fin­an­cial stocks dived this week as the fal­lout from the col­lapse of Sil­icon Val­ley Bank spread through global mar­kets. Banks in the US, Europe and Japan have col­lect­ively lost $460bn in mar­ket value so far this month, the sharpest slump since March 2020.

Efforts to sta­bil­ise the fin­an­cial sys­tem and head off broader panic have only partly suc­ceeded. Shares in troubled Cali­for­nian bank First Repub­lic fell more than 30 per cent yes­ter­day des­pite a $30bn cash infu­sion from Wall Street banks, includ­ing JPMor­gan Chase and Gold­man Sachs.

Credit Suisse shares fell a fur­ther 8 per cent even after Thursday’s pro­vi­sion of an SFr50bn emer­gency credit line from the Swiss cent­ral bank. Gold­man lost about $200mn at its trad­ing desk that deals in interest rate products, accord­ing to people famil­iar with the mat­ter. Gold­man declined to com­ment.

Global reg­u­lat­ors held talks last night to dis­cuss how to calm fears about the health of the fin­an­cial sys­tem, with some focus­ing on options to sta­bil­ise Credit Suisse and its sub­si­di­ar­ies. Exec­ut­ives and board mem­bers at the Swiss lender are also debat­ing the future of the 167-year-old bank, which for years has lurched from one crisis to another.

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Comments

  1. Connor18 March 2023 at 11:03

    I wonder why First Republic shares fall so much. I mean, I was expecting things to fall but not 30%, maybe 10-15% considering the cash infusion from Wall Street.

    ReplyDelete
    Replies
    1. Aram18 March 2023 at 11:29

      Don't know what happened with First Republic but I do know why Credit Suisse is down. It's (among others) because of the scandals surrounding their chairman who really should resign. I mean what is he waiting for? He is just adding more weight to sink the bank.

      Delete
  2. Joseph18 March 2023 at 11:54

    Credit Suisse needs to start from zero. Fire everyone and hire new people especially in the important positions. Be transparent and stop hiding money for who knows what criminals. Otherwise you aren't going to survive much longer.

    ReplyDelete

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