Western Alliance dropped by 64% and KeyCorp by 37%, among others.
However, First Republic Bank says it remains strong.
The shares of banks in the
United States saw significant drops on Monday despite announcements by
regulators that deposits at the failed lenders Silicon Valley Bank (SVB) and
Signature Bank will be protected. The stocks of regional lender First Republic Bank
tanked the most, slumping by over 60% on Monday, accounting for the largest
share loss.
At the time of filing this
report, the stocks of the California-based bank had dipped by over 65% to about
$28. Other banks and financial services companies saw their stock prices plummet: Western Alliance Bancorp by 64% to $18, KeyCorp by 37% to 11% and
PacWest Bankcorp by 30% to $7.
Other lenders are as followed: Zions
Bancorporation by 25% to $30, Charles Schwab by 11% to $52 and Bank of America
by 3% to $29, among others. Many of these stocks were halted several times during the day due
to the volatility.
Furthermore, the fall in prices is
despite the fact that the Federal Reserve launched a new Bank Term Funding
Programme to provide loans of up to a year to banks in exchange for
high-quality collaterals like Treasuries.
However, First Republic Bank
says it remains strong. Jim Herbert, the bank’s Executive Chairman told CNBC on
Monday that the lender was operating as usual. The bank on Sunday announced
that it received extra funding from the Federal Reserve and JPMorgan, bringing the bank’s reserve liquidity to about $70 billion.
SVB Throws US into Largest Bank
Failure since 2008
The plummeting shares of the US
banks occurred days after SVB, a lender that serves technology firms, collapsed
following its inability to meet client withdrawal needs. The withdrawal frenzy
among investors had been spurred by rising interest rates in the
past year.
To meet the needs, last
Wednesday SVB sold its bond portfolio comprising mostly of US Treasures at a $1.8
billion loss. In addition, the company announced plans on Thursday to offer its investors common equity and preferred convertible stocks worth $2.25 billion.
However, by Friday, the Federal Deposit Insurance Corporation admitted that SVB is under its receivership. The UK arm of the bank was sold to HSBC for £1.
To prevent contagion, on Sunday, New York
regulators shutdown Signature, a full-service bank, in its bid to
“protect depositors.” However, the cryptocurrency exchange, Coinbase, and the stablecoin issuer, Paxos later disclosed their massive exposure to Signature Bank.
In addition, the Federal Reserve on Sunday launched the Bank Term Funding Programme, which is a $25 billion funding
scheme to support institutions, such as commercial banks to cover their
liquidity needs in times of emergency.
The shares of banks in the
United States saw significant drops on Monday despite announcements by
regulators that deposits at the failed lenders Silicon Valley Bank (SVB) and
Signature Bank will be protected. The stocks of regional lender First Republic Bank
tanked the most, slumping by over 60% on Monday, accounting for the largest
share loss.
At the time of filing this
report, the stocks of the California-based bank had dipped by over 65% to about
$28. Other banks and financial services companies saw their stock prices plummet: Western Alliance Bancorp by 64% to $18, KeyCorp by 37% to 11% and
PacWest Bankcorp by 30% to $7.
Other lenders are as followed: Zions
Bancorporation by 25% to $30, Charles Schwab by 11% to $52 and Bank of America
by 3% to $29, among others. Many of these stocks were halted several times during the day due
to the volatility.
Furthermore, the fall in prices is
despite the fact that the Federal Reserve launched a new Bank Term Funding
Programme to provide loans of up to a year to banks in exchange for
high-quality collaterals like Treasuries.
However, First Republic Bank
says it remains strong. Jim Herbert, the bank’s Executive Chairman told CNBC on
Monday that the lender was operating as usual. The bank on Sunday announced
that it received extra funding from the Federal Reserve and JPMorgan, bringing the bank’s reserve liquidity to about $70 billion.
SVB Throws US into Largest Bank
Failure since 2008
The plummeting shares of the US
banks occurred days after SVB, a lender that serves technology firms, collapsed
following its inability to meet client withdrawal needs. The withdrawal frenzy
among investors had been spurred by rising interest rates in the
past year.
To meet the needs, last
Wednesday SVB sold its bond portfolio comprising mostly of US Treasures at a $1.8
billion loss. In addition, the company announced plans on Thursday to offer its investors common equity and preferred convertible stocks worth $2.25 billion.
However, by Friday, the Federal Deposit Insurance Corporation admitted that SVB is under its receivership. The UK arm of the bank was sold to HSBC for £1.
To prevent contagion, on Sunday, New York
regulators shutdown Signature, a full-service bank, in its bid to
“protect depositors.” However, the cryptocurrency exchange, Coinbase, and the stablecoin issuer, Paxos later disclosed their massive exposure to Signature Bank.
In addition, the Federal Reserve on Sunday launched the Bank Term Funding Programme, which is a $25 billion funding
scheme to support institutions, such as commercial banks to cover their
liquidity needs in times of emergency.
Solomon Oladipupo is a journalist and editor from Nigeria that covers the tech, FX, fintech and cryptocurrency industries. He is a former assistant editor at AgroNigeria Magazine where he covered the agribusiness industry. Solomon holds a first-class degree in Journalism & Mass Communication from the University of Lagos where he graduated top of his class.
Worldpay Rolls Out Tap to Pay on iPhone for Simplifying Payments
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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