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After the closure of Silicon Valley Bank and Signature Bank, fears have grown of a contagion that could involve other institutions. As reported by Sky Italy, an analysis by Jp Morgan mentions some institutions that are losing a lot on the stock exchange, There are Citizens Financial Group, PacWest Bancorp, Western Alliance Bancorporation and Comerica.
There is also First Republic Bank, which after Monday's crash is instead making a big rebound on Wall Street today. The intervention of the American authorities over the weekend, which also allows customers of the Californian institution SVB to pay unsecured deposits closed last Friday following the bank run, did not help to avoid a drop in investor confidence First Republic and Western Alliance collapsed on Wall Street yesterday with losses of more than 67% despite US President Joe Biden assuring his fellow citizens that their deposits are safe.
Today, however, First Republic is flying to Wall Street, where it marked a 61% increase at the start of trading.
Silicon Valley Bank collapse: other banks at risk
Moody's has placed First Republic Bank and five other US lenders under observation pending a downgrade.
The move is yet another sign of concern for the health of regional financial institutions. In addition to First Republic, the institutions under observation, reports Bloomberg, are Western Alliance Bancorp, Intrust Financial, UMB Financial, Zions and Comerica.
Central banks are now under observation. First of all the ECB, which on Thursday will have to take account of the tensions on the banking system, followed by the Fed. Some large investment banks have gone so far as to foresee a break (Goldman and Natwest) and others (Nomura) even a cut from 25 basis points in next week's meeting.
Confidence has also failed towards European banks and not only in the United Kingdom where Svb UK, the local branch of the Santa Clara group, of which the Bank of England had declared insolvency, was sold for 1 euro to the giant HSBC .