Despite the fact that the Fed may have helped Silicon Valley Bank (SVB depositors )’s on Monday, market uncertainties regarding the entire banking industry continue to be a major concern.
Similar to SVB last Friday, trading for a number of financial businesses was suspended on Monday due to share price volatility.
Trading for Charles Schwab, a global provider of financial services with $7.8 trillion in assets under management, was suspended on the NYSE on Monday at 9:49 am EDT, according to Nasdaq Trader. The price of the company’s stock is down 18% today.
Before being stopped at 10:43 am EDT, First Republic Bank had plummeted by a record 76% since Monday’s start. Late last week, the bank’s stock was already under intense pressure together with SVB and Signature Bank.
Before being stopped at 10:43 am EDT, First Republic Bank had plummeted by a record 76% since Monday’s start. Late last week, the bank’s stock was already under intense pressure together with SVB and Signature Bank.
Western Alliance (-76%), PacWest (-47%), Zions (-24%), and Comerica (-33%) are some of the other stocks that have been suspended. The Nasdaq KBW Index of Commercial Banks, which is currently down 11%, highlights how badly the banking industry has been hit as a whole.
Before being shut down by authorities and claimed by the FDIC last Friday, SVB had fallen by roughly 66%.
On Sunday, the Federal Reserve agreed to bail out both Signature Bank’s and SVB’s depositors in order to safeguard the banking system. Signature Bank was also placed under receivership.
SVB was a hazard for some well known cryptocurrency companies including Coinbase, Paxos, Ripple, and Circle, the latter of which held $3.3 billion in cryptocurrencies reserves. Since then, Circle has decided to take back its money and transfer these assets to BNY Melon.