After the recent collapse of three banks in the US, several banks are now under pressure again. For example, PacWest lost more than half of its stock market value on Thursday.
PacWest says it is now in talks with investors about its future. Rates of other regional banks including Western Alliance also fell sharply. Trading in the shares of the above two banks was also temporarily halted due to huge price fluctuations.
The Silicon Valley bank’s troubles began in March. The bank was struggling due to investment losses and customers withdrawing their money in bulk. The company could no longer be independent and was swallowed up by the big banks. Not long after, the same thing happened with Signature Bank.
Peace returned until a new problem arose last week. Californian bank First Republic announced that customers had withdrawn no less than $100 billion (€90 billion) in a short period of time. Here too, being independent is no longer an option. JPMorgan Chase, America’s largest bank, bought the ailing company late last week.
Lack of confidence in banks
Banks primarily rely on the trust of their customers. But that belief is now very loose. Investors and customers are watching the market closely to look for other banks in bad shape.
For example, confidence in California-based PacWest is very low. The bank has seen customers withdraw billions in savings in recent months. It is said to be in talks with other parties about its future. An acquisition by another company would be one of the possibilities.
According to a report by a British business newspaper Financial Times Western Alliance is in the same boat and is considering a sale. The bank itself strongly denies this.
“Passionate analyst. Thinker. Devoted twitter evangelist. Wannabe music specialist.”
Bitcoin price rises after good news from US
For the first time, the Philippines, the United States and Japan are conducting a joint exercise of the Coast Guard
Investors look to inflation data and US debt ceiling | economy