A handful of regional banks that, a few weeks ago, were small players in the huge US banking system, are now the epicenter of a crisis that has rocked America. The turmoil in regional banks has also involved billionaire investor Warren Buffett and CEO of JPMorgan Chase & Co. Jamie Dimon.
Mr Warren Buffett
Source: Bloomberg
Buffett, who heads investment and insurance firm Berkshire Hathaway, has met with the Biden administration over possible support for regional banks.contact On the other hand, small and medium banks and some legislatorsHe appeals to the government to strengthen deposit protection.
Amidst the turmoil surrounding US regional banks despite efforts by regulators, the banking industry has decided to make a historic and painful consolidation. by the UBS GroupCredit Suisse Acquisition Group. Although speculation about the fate of Credit Suisse has ended, the outlook for regional banks remains uncertain.
“There will be a lot of volatility ahead,” said Mohamed El-Erian, Allianz’s chief economic adviser. “I guess people are doing something irrational but understandable: moving money.” He said in an interview. He is also a columnist for Bloomberg Opinion.
Mohammed El-Erian talks about the US bank crisis
Source: Bloomberg
Bloomberg News reported on Monday that the Federal Deposit Insurance Corporation (FDIC) is working to dismantle bankrupt Silicon Valley Bank (SVB) after failing to find a suitable buyer in its second auction.Report. FDIC to extend deadline for proposal for SVB receiver bank on 20thPublished. The new deadline for tenders is March 24 for the “bridge bank,” which manages SVB’s assets and liabilities, and March 22 for Silicon Valley Private Bank. The FDIC said it had received “substantial interest” from several sources.
First Citizens Still Pursuing Silicon Valley Bank Acquisition
On the other hand, the rating agency S&P Global Ratings said on the 19th that First Republic BankLowered the credit rating again. It had already been downgraded to junk (non-investment grade) a few days earlier.
from Columbia University School of Business and Law”The biggest unsolved problem is First Republic Bank, which ran out of deposits after being somewhat unfairly linked to Silicon Valley banks and Signature banks,” said Todd Baker, a senior fellow at the joint research institute who was hit by a “We expect to see private capital injections and mergers and acquisitions (M&A) in the near future,” he said, adding that the bank would be able to maintain its relationship with its core wealthy clients. First Republic will specializes in private banking and wealth management, and sets itself apart from failed SMBsclaim
Deposits to First Republic in Talks to Convert to Capital Injection – Officials
In the US stock market on the 20th, although bank stocks were generally strong,First Republic shares fell sharply. It dropped more than 20% at one point.
Related article
Original title:US Banks on a Bumpy Path as First Republic Troubles Continue (2) (抜粋）
.jpg?fit=300%2C300&ssl=1)
