Wall Street It is trading as low as 1% as it clings to possible Fed rate dovishness amid falling financial stocks after the Silicon Valley Bank collapse.
The Dow Jones falls 0.22% to 31,839.44 points; while the Nasdaq Composite advances slightly 0.4% to 11,144.39 points. Meanwhile, the S&P500 lost 0.34% to 3,851.50 points.
US and European banks start the week with sharp declines after the collapse of Silicon Valley Bank and despite the emergency measures by the Fed and Joe Biden’s statement to rule out a financial collapse.
The biggest fall of 70% is presented by the First Republic Bank on Wall Street, while other banking entities also suffer a collapse such as Western Alliance Bancorp (-61%), PacWest Bancorp (-24%) or Zions Bancorporation (-21%) .
According to Efe, First Republic Bank, based in San Francisco, issued a note on Sunday with which it intended to reassure its clients, which it assured that it was “reinforcing and diversifying its liquidity” with access to new funds from the Federal Reserve and from JP Morgan Chase bank.
So far, the big US banks – JPMorgan Chase, Bank of America, City Group and Wells Fargo – seem to be resisting and have not been swept up in the panic since last Thursday.
What Joe Biden said about it
President Joe Biden assured Americans on Monday that their banking system “is safe” and their deposits will be available “when they are needed”, after the bankruptcy of Silicon Valley Bank and Signature Bank, which threatened to trigger a broader crisis.
In statements from the White House, Biden added that US taxpayers will not bear the bank’s losses and that he will ask Congress to “strengthen” regulation of the banking sector.
Biden hinted at new regulation of big banks in the wake of America’s biggest bank failure since the 2008 financial crisis, but he faces a divided Congress that is unlikely to pass tougher new rules.
Source: Ambito
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