Two more US lender stocks were halted amid concerns of a banking crisis.banking
Stocks of two more regional US lenders were temporarily halted on Thursday amid the growing crisis in US midsize banks.
Regulators stepped in to halt trading after the shares of Los Angeles-based PacWest and Arizona’s Western Alliance fell sharply.
This is because First Republic, another mid-sized bank, Sold to JP Morgan Earlier this week.depositor is withdrew $100 billion Feared that their money was no longer safe.
PacWest tried to calm the market on Wednesday and said it was in talks with several potential investors after its share price fell as much as 60%. However, the selling continued on Thursday, impacting other local banks.
Pak West shares fell 50% on Thursday after Bloomberg news report The lender was considering strategic options such as a sale or a financing round.
The bank tried to reassure investors by saying it had not experienced any unusual deposit flows. It’s in progress,” he added.
Western Alliance shares have since plummeted 45%. The Financial Times reported Strategic options, including a possible sale, were being considered, but the bank strongly denied them. The company called the story “completely false” and said it had not experienced any unusual deposit inflows since the sale of First Republic.Its shares closed down 38% on Thursday
The First Republic was the third U.S. bank failure to be caught in the financial crisis and the worst since the 2008 financial crisis. Silicon Valley Bank and signed in March.
Bill Ackman, CEO of New York hedge fund Pershing Square, has warned that the entire U.S. regional banking system is at risk. In a tweet preceding PacWest’s statement, he wrote: As each domino falls, the next weaker bank begins to wobble.
“We’re running out of time to fix this problem. How many more needless bank failures do we need to watch before the FDIC?” [Federal Deposit Insurance corporation], and will our government wake up? Now we need a system-wide deposit guarantee scheme. ”
Total deposits stood at $28 billion (£22.2 billion) as of Tuesday, according to PacWest. “Our cash and available liquidity remain strong and outperform uninsured deposits,” he said.
PacWest’s branch in Glendale, a city outside of Los Angeles, was open Thursday afternoon, quiet, mostly empty, and with no visible signs of disruption. A customer consulted a banker at his desk. Employees chatted with each other and provided phone numbers to company spokespeople when asked to comment on the bank’s situation.
Outside the branch, Irwin Lee, from Los Angeles, was worried about news stories about the PacWest situation, especially since he had just opened a CD account with the bank that day and his new account was FDIC insured. said no.
“People think it’s worrying, but it shouldn’t be,” Lee said. He said he trusts the Biden administration to protect bank customers, especially after federal intervention following the failure of Silicon Valley Bank.
“The president will cover it no matter what,” Lee said. “They don’t want to see other banks fail or people start withdrawing money.”
Other, lesser-known regional banks have also been affected. Shares of Dallas-based Comerica fell 13%, while Zions’ Ban Corp. fell about 16% on Thursday. Unlike in the UK, small regional banks play a major role in the economy, accounting for nearly half of US consumer and business lending.
Federal Reserve Chairman Jerome Powell says the U.S. banking system ‘Stay healthy and resilient’, after the central bank voted to raise interest rates to a 16-year high. Currently, benchmark interest rates range from 5% to 5.25%.
on monday, JP MorganUntil the demise of Washington Mutual, the largest U.S. bank, sold to JP Morgan in 2008 after regulators foreclosed on lenders.
“We can’t turn to JP Morgan for help again,” said Neil Wilson, chief market analyst at trading platform markets.com. He noted that Chairman Powell said:
Mr Wilson added: It takes a lot more time and probably a lot more pain to get there. ”
Summarize this content to 100 words Stocks of two more regional US lenders were temporarily halted on Thursday amid the growing crisis in US midsize banks.Regulators stepped in to halt trading after the shares of Los Angeles-based PacWest and Arizona’s Western Alliance fell sharply.This is because First Republic, another mid-sized bank, Sold to JP Morgan Earlier this week.depositor is withdrew $100 billion Feared that their money was no longer safe.PacWest tried to calm the market on Wednesday and said it was in talks with several potential investors after its share price fell as much as 60%. However, the selling continued on Thursday, impacting other local banks.Pak West shares fell 50% on Thursday after Bloomberg news report The lender was considering strategic options such as a sale or a financing round.The bank tried to reassure investors by saying it had not experienced any unusual deposit flows. It’s in progress,” he added.Western Alliance shares have since plummeted 45%. The Financial Times reported Strategic options, including a possible sale, were being considered, but the bank strongly denied them. The company called the story “completely false” and said it had not experienced any unusual deposit inflows since the sale of First Republic.Its shares closed down 38% on ThursdayThe First Republic was the third U.S. bank failure to be caught in the financial crisis and the worst since the 2008 financial crisis. Silicon Valley Bank and signed in March.Bill Ackman, CEO of New York hedge fund Pershing Square, has warned that the entire U.S. regional banking system is at risk. In a tweet preceding PacWest’s statement, he wrote: As each domino falls, the next weaker bank begins to wobble.”We’re running out of time to fix this problem. How many more needless bank failures do we need to watch before the FDIC?” [Federal Deposit Insurance corporation], and will our government wake up? Now we need a system-wide deposit guarantee scheme. ”The regional banking system is in jeopardy. A bad weekend for SVB depositors has awakened uninsured depositors everywhere. Rapidly rising interest rates have eroded assets and dried up deposits. Eliminating stockholders and bondholders has significantly increased the bank’s cost of capital. Loss of CRE is imminent…— Bill Ackman (@BillAckman) May 3, 2023Total deposits stood at $28 billion (£22.2 billion) as of Tuesday, according to PacWest. “Our cash and available liquidity remain strong and outperform uninsured deposits,” he said.PacWest’s branch in Glendale, a city outside of Los Angeles, was open Thursday afternoon, quiet, mostly empty, and with no visible signs of disruption. A customer consulted a banker at his desk. Employees chatted with each other and provided phone numbers to company spokespeople when asked to comment on the bank’s situation.Outside the branch, Irwin Lee, from Los Angeles, was worried about news stories about the PacWest situation, especially since he had just opened a CD account with the bank that day and his new account was FDIC insured. said no.”People think it’s worrying, but it shouldn’t be,” Lee said. He said he trusts the Biden administration to protect bank customers, especially after federal intervention following the failure of Silicon Valley Bank.Skip past newsletter promotionssign up for business todayGet ready for your working day – every morning with all the business news and analysis you need”,”newsletterId”:”business-today”,”successDescription”:”We send you Business Today on weekdays”}” clientOnly>Privacy Notice: The newsletter may contain information about charities, online advertising and content funded by external parties. For more information, privacy policyWe use Google reCaptcha to protect our website and Google. privacy policy and terms of service application.After newsletter promotion”The president will cover it no matter what,” Lee said. “They don’t want to see other banks fail or people start withdrawing money.”This is the Pacific Western Bank branch in Glendale that I visited a few minutes ago. It was very quiet, almost empty. He saw one customer who had just opened his new CD account and wasn’t worried at all. pic.twitter.com/AAHz8EYabA— Lois Beckett (@loisbeckett) May 4, 2023Other, lesser-known regional banks have also been affected. Shares of Dallas-based Comerica fell 13%, while Zions’ Ban Corp. fell about 16% on Thursday. Unlike in the UK, small regional banks play a major role in the economy, accounting for nearly half of US consumer and business lending.Federal Reserve Chairman Jerome Powell says the U.S. banking system ‘Stay healthy and resilient’, after the central bank voted to raise interest rates to a 16-year high. Currently, benchmark interest rates range from 5% to 5.25%.on monday, JP MorganUntil the demise of Washington Mutual, the largest U.S. bank, sold to JP Morgan in 2008 after regulators foreclosed on lenders.”We can’t turn to JP Morgan for help again,” said Neil Wilson, chief market analyst at trading platform markets.com. He noted that Chairman Powell said:Mr Wilson added: It takes a lot more time and probably a lot more pain to get there. ”
https://www.theguardian.com/business/2023/may/04/shares-in-california-lender-pacwest-plummet-amid-fears-of-new-us-banking-crisis Two more US lender stocks were halted amid concerns of a banking crisis.banking