because another crash is approaching for US banks – Corriere.it

First Republic Bank takes another hit on Wall Street. During the session, the stock dropped 39.26% and was suspended repeatedly, while it now stands at -20.12%. With yet another decline the bank’s market capitalization falls below $1 billion. The slide started again this week, wiping out more than 50% of the bank’s value: Investors are still worried by the news that US government officials, according to some sources, confided that the government would not intend to intervene in the bailout or a recovery plan of the institute, in difficulty after the bankruptcies of Silicon Valley Bank and Signature Bank.

Saving options

In the previous session on Tuesday, April 25, the US bank recorded a 49% drop to $8.10: a fraction of the price of a year ago, when it traded at about $170 a share. The institute, in fact, revealed in the results for the first quarter of the year that its depositors have withdrawn over $100 billion (precisely 173.5) during the past month, who fear that a story like that of Svb of a drop in liquidity could recur and therefore a new banking crisis. According to some rumors of ReutersFirst Republic Bank is evaluating various options, including the sale of assets for between 50 and 100 billion dollars in an attempt to find new resources or the creation of a so-called “bad bank”, which consists of a vehicle corporate into which to merge the “toxic” assets of a bank.

The support of the big US banks

In March, they had moved to the rescue of Frb 11 among the largest banking groups in the United States – including JPMorgan, Bank of America, Citigroup and Wells Fargo – which together have allocated 30 billion dollars. Analysts speculate that the emergence of a new financial crisis could induce the Fed to ease monetary tightening, thus stopping the rate hike of interest, with which the central bank is trying to contain inflation. Bitcoin benefited from this, with an increase of 7% at $30,000. While, at the expense are also the bank stocks in Piazza Affari: at the end of the session, Bper lost 6.7%, Banco Bpm 5.5% and Mps 5.4%. Unicredit (-1.9%) and Intesa Sanpaolo (-1.1%) tried to stem the damage. Even the Moncler (-0.9%) performed badly, pending the first quarter accounts scheduled for next week and after the unconvincing numbers released by Kering. On the other hand, Eni gained 0.97%, celebrating the natural gas liquefaction project in the Congo. After the recent decreases, the Tims also closed up 1%, in view of next week’s board meeting. Here the performance of stock exchanges in real time.

European stock exchanges

The rest of the European stock exchanges also closed down, with investors who, while assessing the various quarterly earnings, remain concerned about the impact of the increase in interest rates on the global economy. The situation of First Republic Bank also weighs, whose shares continue to lose after yesterday’s collapse, marking a fall of 39.25%. In London the Ftse 100 index lost 0.47% to 7,854.40 points, in Frankfurt the Dax lost 0.49% to 15,793.65 points and in Paris the Cac40 dropped 0.86% to 7,466.66 points. TO Piazza Affari, the Ftse Mib index drops by 0.54% to 27,105.00 points. The spread between 10-year BTPs and German Bunds closed down: the differential ended the session on the electronic markets at 187 basis points against 190 at the start. The yield on the Treasury product at 4.26%. Here the spread in real time.