US Regional Banks Remain Under Pressure as First Republic Sinks March 13, 2023 Unipro2013main News, World Economy, World News </p> <h2>Turmoil that’s engulfed Bank Stocks</h2> <p> The turmoil that’s engulfed bank stocks deepened Monday as investors rushed to reduce exposure to the industry, triggering a cascade of trading halts as multiple lenders suffered record drops.</p> <p>Regional banks were among the hardest hit with the KBW Regional Banking Index sinking by as much as 12%, its sharpest intraday plunge since March 2020. The rapid selloff comes even as the Treasury Department, Federal Reserve and Federal Deposit Insurance Corp. said they were introducing a new backstop for banks that would be large enough to protect the entire nation’s deposits.</p> <p>“Most banks are solvent under normal circumstances. The problem is, pretty much no bank can withstand a full bank run,” said Steve Sosnick, chief strategist at Interactive Brokers LLC. “The FDIC action removes the idea of a deposit bank run, but what we’re seeing is an investor bank run,” he added.</p> <p>First Republic Bank sank 79% for a record drop, sparking multiple halts for volatility<br /> Western Alliance Bancorp lost 85%, its biggest drop ever<br /> PacWest Bancorp was down 60%, hitting a record low<br /> Among other regional banks sinking more than 20% on Monday and triggering halts: Customers Bancorp Inc., Comerica Inc., Zions Bancorporation, East West Bancorp and Bank of Hawaii<br /> Many large US banks also churning lower, with Bank of America Corp., Citigroup Inc. and Wells Fargo & Co. all slumping 3% or more on Monday.<br /> <br /> Credit to : Bloomberg</p> <p> Please support our Sponsors here :
