New Delhi: The tsunami that has hit the American banking sector (US Banking Crises) is not stopping. First it was decided to close Silicon Valley Bank and then Signature Bank was closed. Now after the closure of two banks, the third bank is also about to close. Let us tell you that the time has come to hang the lock on First Republic Bank as well. This is the third major bank in just one week, whose condition has worsened.
Bank shares fall sharply
According to the information received, the shares of First Republic Bank have decreased by 61.83%. If you look at last week’s decline, First Republic Bank stock price is down 74.25%. Its price touched a low of $19 per share on the last trading day. A similar situation occurred in Silicon Valley Bank and Signature Bank and both these banks got locked. Now this big bank is also likely to collapse. Which is having a direct impact on the stock market.
Global rating agency Moody’s has also named First Republic Bank as the first of six US banks to be placed under review. In addition, the rating agency has also downgraded the ratings of Zions Bancorporation, Western Aliens Bancorp, Comerica Inc, UMB Financial Corp and Intrust Financial Corporation and placed them under review. Earlier, Moody’s had previously assigned ‘C’ rating to Signature Bank. But on Monday, New York-based Signature Bank’s debt rating was also downgraded to junk territory. The agency’s move is a major blow to the US banking sector.
Looks like 2008
Due to a bank crash in America, the threat of recession like 2008 is getting closer. That year the banking firm Lehman Brothers declared itself insolvent. After this there was an economic depression all over the world including America and the economy was broken. If you look at the history of banking in America, the second major shutdown in the banking sector after 2008 was the closure of Silicon Valley Bank. Soon after, a third Signature Bank and now a fourth in the form of First Republic are on the verge of closing.
More banks may sink in the tsunami
Meanwhile, veteran American investor Bill Aikman has expressed the possibility that more names will be included in the list of banks drowned in this tsunami of the banking sector in America. Silicon Valley Bank will affect many banks. According to Ackman, many banks are likely to fail even after the intervention of the US authorities.