The Dow Jones continues to fall. Recently, it fell more than 400 points, falling below the level of 32,000, while investors continued to sell bank stocks. amid concerns over stability in the financial system
As of 10:29 p.m. Thai time, the Dow Jones Industrial Average was 31,812.84 points, down 433.71 points or 1.34%.
Banking stocks tumbled on Tuesday as SVB Financial Group, the parent company of Silicon Valley Bank (SVB), filed with a New York court for Chapter 11 bankruptcy protection.
First Republic Bank (FRB) stock price, the US regional bank. slumped over 20% in trading today. Although the big banks in the US announced to inject a total of $ 30 billion or about 1 trillion baht to increase liquidity for the FRB.
the media reported that Behind the deal were Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and JPMorgan Chase Chief Executive Jamie Dimon. S, the largest US bank
However, experts say that although the FRB received an injection in the form of deposits from major banks yesterday. But such measures will help support the bank’s financial position only temporarily. before finally having to sell the business
“While the deposits have eased concerns about the FRB situation, the bank still has to pay interest on the deposits. which is charged at the current rate And will affect the bank’s interest income and because the FRB has a poor financial position. The bank may eventually consider a divestiture,” said Art Hogan, chief market analyst at B. Riley Wealth Management.
The FRB borrowed $109 billion from the Fed between March 10-15 and is the bank with the third-highest volume of non-government-guaranteed deposits behind Silicon Valley. Lay Bank and Signature Bank, which were previously closed. As a result, many clients have migrated their deposits away from FRBs to larger banks.
Shares of Credit Suisse, which trade on Wall Street, fell 5 percent on Monday as investors remained concerned about the bank’s financial condition. Although the Swiss central bank announced its financial support to Credit Suisse.
Charles-Henri Monchou, chief investment officer at Syz Bank, said the central bank should do more to restore investor confidence in Credit Suisse.
“Supportive measures from the Swiss central bank are still insufficient to help credit. Switzerland is completely out of trouble. All Credit Suisse deposits should be guaranteed and capital injected to provide credit. Switzerland is restructuring,” Moncho said.
The Swiss central bank and the Swiss Financial Market Supervisory Authority. pledges to provide liquidity to assist Credit Suisse, if needed, and affirms that Credit Suisse meets the capital and liquidity criteria established for systemically important banks. after credit Switzerland announced a loan from the Swiss central bank of 50 billion Swiss francs. under a comprehensive financing and short-term liquidity financing program
Credit Suisse shares plummeted to a previous record low. Behind the Saudi National Bank (SNB), which is the largest commercial bank in Saudi Arabia. Credit Suisse, the largest shareholder, announced that the SNB was unable to increase its financial support to Credit Suisse as it would allow SNB to hold more than 10% of Credit Suisse’s shares, in violation of banking regulations.
Credit Suisse said The bank posted a net loss of CHF 1.4 billion in the fourth quarter of 2022, beating analysts’ expectations of CHF 1.32 billion. As a result, the full-year loss amounted to CHF 7.3 billion. In addition, clients withdrew deposits of more than CHF 110 billion in the fourth quarter of 2022 amid concerns over the banking scandal. violation and the risk of prosecution.