The collapse of 3 major banks in the US within a span of 2 months indicates that the crisis in the financial sector is deeper than one probably imagined. Valuation guru Aswath Damodaran believes there are more dominos waiting to fall in the US banking business, with banks that have grown the most in the … Read more
JPMorgan Chase & Co. posted a 52% jump in its first quarter profits, helped by higher interest rates, which allowed the bank to charge customers more for loans. The bank saw deposits grow noticeably, as business and customers flocked to the banking titan after the failure of Silicon Valley Bank and Signature Bank. With JPMorgan’s … Read more
The ongoing instability of the world banking sector will urge central banks to go slow on aggressive monetary policy. We can expect the rates to peak in the next couple of months.And the world economy and stock market will take it with open arms. Generally, it is a good development, preaching out the probability of … Read more
Until early March, investors worldwide were expecting the US Federal Reserve to raise interest rates by a smaller quantum of 25 basis points this month as inflation cooled off for the 8th straight month in February. However, the collapse of two commercial banks – Silicon Valley Bank and Signature Bank – changed things overnight and … Read more
Pacific Western Bank, a unit of PacWest Bankcorp, said on Friday it had witnessed ‘elevated’ withdrawals following the collapses of Silicon Valley Bank and Signature Bank, but deposit movements had stabilized since Monday. The Los Angeles-based bank gave no details on the sum of the withdrawals but said they were mainly from its venture banking … Read more
The headquarters of Swiss bank Credit Suisse. | Photo Credit: AP Credit Suisse’s shares have soared 30% after it announced it will move to shore up its finances by borrowing up to nearly $54 billion from the Swiss Central Bank. It’s a massive swing on March 16 after its shares plunged 30% on the SIX … Read more
Shares in European banks got pummeled again on Wednesday, as Credit Suisse plunged to fresh record lows after the lender’s biggest shareholder said it could not raise its 10% stake citing regulatory issues. Credit Suisse fell below 2 Swiss francs ($2.18) for the first time after Saudi National Bank said it could not go above … Read more
State regulators closed New York-based Signature Bank on Sunday, making it the third largest failure in U.S. banking history. Signature’s failure followed Silicon Valley Bank‘s Friday shutdown, the second largest in U.S. history behind Washington Mutual, which collapsed during the 2008 financial crisis. The Federal Deposit Insurance Corporation (FDIC) took control of Signature, which had … Read more