Sharp decline in American banks after the collapse of SVB

Several US banks started the week with sharp declines in shares on Wall Street after the collapse of a Silicon Valley bank and despite emergency measures unveiled yesterday by banking regulators.

In the bars before the opening of the stock market on Wall Street, First Republic Bank was the most affected with a drop of 62% in shares, while the declines were also pronounced in other banking entities such as Western Alliance Bancorp (-61%). ), PacWest Bancorp (-24%) or Zions Bancorporation (-21%).

First Republic Bank, based in San Francisco, had already issued a note yesterday to reassure its clients that it was “enhancing and diversifying its liquidity” with access to new funds from the Federal Reserve and JP Morgan. Hunt.

Specifically, it explained that the amount of available and still unused liquidity is $70,000 million, a figure that does not include the amount that could be obtained from the emergency plan announced yesterday by the Federal Reserve in a joint statement with the Treasury Department and the Treasury Department. Federal Deposit Insurance Corporation (FDIC).

So far, the big US banks – JP Morgan Chase, Bank of America, Citigroup and Wells Fargo – seem to be holding their own and have not been caught up in the panic since last Thursday.

The atmosphere of concern was also transmitted to the other side of the Atlantic, and the declines around 2 pm (Central European time) were particularly pronounced for the French Crédit Agricole (-14.34%), the German Commerzbank (-10.2%), and Banco Santander ( -8.27%).

In Italy, Unicredit loses 7.84%, and Intesa Sanpaolo 6.83%; while the Swiss UBS fell 7.2%.

French BNP Paribas left 6.39%, ING (Netherlands) 6.98% and BBVA (Spain) 7.04%. In the United Kingdom, Barclays fell 5.36% and HSBC 4.7%.

On Sunday, US regulators launched a deposit protection plan for Silicon Valley Bank (SVB) following its collapse, while another banking institution, Signature Bank, was closed under the same parameters.