Traders work on the floor during morning trading at the New York Stock Exchange (NYSE) in New York City on March 10, 2023. Bank shares fell on Monday despite US regulator action to protect deposits at Silicon Valley Bank and Signature Bank.
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Spencer Platt/Getty Images
Traders work on the floor during morning trading at the New York Stock Exchange (NYSE) in New York City on March 10, 2023. Bank shares fell on Monday despite US regulator action to protect deposits at Silicon Valley Bank and Signature Bank.
Spencer Platt/Getty Images
Bank shares tumbled on Monday, with First Republic down more than 60% in the opening market, despite emergency US action to boost confidence in the financial system after the collapse of Silicon Valley Bank.
The denials came despite an emergency move by regulators to protect depositors at Silicon Valley Bank as well as Signature Bank on Sunday, as well as comments by President Biden on Monday to reassure the Americans about the safety of bank deposits.
However, investors are concerned that other banks, especially smaller and regional lenders, will not be able to respond to any surge in redemption requests even after the Federal Reserve said on Sunday it would. it makes funding available for banks that need them.
Regulators also said they would protect all deposits at Silicon Valley Bank as well as Signature Bank, which was shut down by New York regulators.
First Republic, a bank with a high number of wealthy depositor and business clients, was among the biggest decliners in bank shares, extending steep declines since last week.
Big lenders like Bank of America and Wells Fargo also fell.
The fall in bank shares dragged down broader indexes, with the Dow Jones Industrial Average down 0.6% in the early hours.