Here's hoping everyone reading this does business with a strong, stable bank(s). But the lessons learned from SVB's failure should apply to all our banking, investments, and business decisions. If there's an economic downturn coming its causes are one part lousy decisions made in the White House and one part corporate distractions caused by silly things like ESG/DEI.
1 comment:
The collapse of SVB Financial Group’s Silicon Valley Bank on Friday and Signature’s seizure by regulators over the weekend sent tremors through the broader banking system. Regional lenders plunged to start the week, with the KBW Regional Banking Index sinking by as much as 12%, its sharpest intraday plunge since March 2020.
First Republic Bank sank 67% for a record drop
Western Alliance Bancorp lost 76%, its biggest drop ever
PacWest Bancorp was down 41%, hitting a record low
“The market is likely to remain very cautious despite regulators stepping in,” said Marija Veitmane, senior multi-asset strategist at State Street Global Markets. “This is a difficult position Fed is in, on the one hand it needs to keep hiking to arrest inflation, but also it needs to protect the financial system. Feels like a lose-lose situation for the Fed and the market.”
Many large US banks also churning lower, with JPMorgan Chase & Co., Bank of America Corp. and Wells Fargo & Co. all trading down to start the week.
Post a Comment