Another US Bank Hits the Bottom
Shares of California-based First Republic Bank fell 64% in premarket trading. Logically with Silvergate, Silicon Valley Bank and Signature, we will soon hear about the stop of trading and the liquidation of another bank.
How much does the collapse continue if the Fed has promised to give money?
It was the Fed that was blamed for the current banking crisis, because the regulator quickly raised rates, which led to an increase in bond yields with a subsequent drop in their value. Banks were up to their necks in these securities and now they have the risk of losing a lot of money if the need arises to sell bonds.
But there is a nuance, the bankers could not have been unaware of the growth in rates and the subsequent fall in bond prices. They were supposed to transfer to other assets, but did not, which showed their complete incompetence.
And who will entrust money to such banks now.