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US regional banks fall on Wall Street after the collapse of the First Republic

US regional banks fall on Wall Street after the collapse of the First Republic

The banks US regional banks fell on Wall Street on Tuesday as fears for the health of the financial system resurfaced after the collapse of First Republic Bank, intervened yesterday by the authorities and partially sold to the country’s largest entity, JPMorgan Chase.

At the close of the stock market, they led the losses pac westwhich sank 28%, followed by Metropolitan Bankwhich fell 20%, and Western Alliance15%.

The KRE exchange-traded fund, which represents the regional banking sector, fell 6.27% in its worst day since the March turmoil.

The falls also occurred amid nervousness before the conclusion of the Federal Reserve’s monetary policy meeting tomorrow, in which the central bank is expected to decide to raise interest rates again, by 25 basis points.

Wall Street is hitting the sell button as it looks like the banking woes are not going away anytime soon and is ready to focus on the next weak link, potentially a lender with a large exposure to commercial real estate.“said the analyst. Edward Moiaof oanda.

In the early hours of this Monday, and after a weekend of speculation, the United States regulators intervened First Republic Bank and reached an agreement to sell most of its operations to JPMorgan for US$ 10.600 million.

the one of First Republic It is the third collapse of a regional bank in just two months in the United States, after those of Silicon Valley Bank and SignatureBank last march.

The bank had sunk on the stock market and had lost virtually all its value last week, when it released its quarterly results and revealed that its clients had taken out more than $100 billion in deposits during the recent banking crisis.

Source: EFE

Source: Gestion

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