A handful of regional banks that, just a few weeks ago, were small players in the giant U.S. banking system, are now at the epicenter of a crisis that has rocked America. The turmoil at regional banks has also involved billionaire investor Warren Buffett and JPMorgan Chase & Co. CEO Jamie Dimon.
Mr Warren Buffett
Source: Bloomberg
Buffett, who heads investment and insurance firm Berkshire Hathaway, has rallied with the Biden administration over possible support for regional banks.contact. On the other hand, small and medium-sized banks and some lawmakersIt is appealing to the government to strengthen deposit protection.
Amid the turmoil surrounding U.S. regional banks despite efforts by regulators, the banking industry has decided to make a historic and painful consolidation. by UBS GroupAcquisition of Credit Suisse Group. While speculation about the fate of Credit Suisse has ended, the outlook for regional banks remains uncertain.
“There will be quite a bit of volatility ahead,” said Mohamed El-Erian, chief economic adviser to Allianz. “People are probably doing something irrational but understandable: moving money. said in an interview. He is also a columnist for Bloomberg Opinion.
Mohammed El-Erian talks about US bank crisis
Source: Bloomberg
Bloomberg News said Thursday that the Federal Deposit Insurance Corporation (FDIC) is working to dismantle the bankrupt Silicon Valley Bank (SVB) after failing to find a suitable buyer in its second auction.Report. FDIC to extend bid deadline for SVB receiving bank on 20thAnnounced. 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 “significant interest” from several sources.
First Citizens Still Pursuing Silicon Valley Bank Acquisition
On the other hand, the ratings 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.
of the Columbia University School of Business and LawJoint research institute“The biggest unsolved problem is First Republic Bank, which suffered deposit outflows after being somewhat unfairly associated with Silicon Valley banks and signature banks,” said Todd Baker, a senior researcher at . I pointed out. “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 clientele. .First Republic will specialize in private banking and wealth management, and set itself apart from failed SVBsclaim.
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 fell more than 20% at one point.
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Original title:US Banks on Bumpy Path as First Republic’s Troubles Persist (2)(excerpt)
