America's Biggest Banks Are Bleeding Hundreds In Billions In Deposits

Wall Street Parade: Deposits at JPMorgan Chase, Bank of America and Wells Fargo Shrank by $465 Billion Y-O-Y; More than Twice the Total of 4,000 Small Banks 

Since the banking crisis began making headlines at expensive media real estate, the narrative has been that deposits are fleeing the small commercial banks and flooding into the biggest banks that are perceived as too-big-to-fail and thus offer a safer venue for deposits. 

Because these mega banks are the same ones that the Fed has been bailing out since the financial crisis of 2008, that narrative requires believing that our fellow Americans are dumber than a stump. 

We decided to check out that narrative for ourselves. Not only is that scenario wrong, but it is so decidedly wrong, and it’s so easy to get the accurate figures, that from where we sit it looks like there might have been an agenda by someone to harm smaller banks. (Since it’s short sellers who have benefited to the tune of more than $7 billion from this misinformation, the Securities and Exchange Commission should find out who the public relations firms are who placed this erroneous information, and who paid them.)  

Read more ....  

WNU Editor: So much for the media and political narrative that it is the small US banks that are losing depositors. The big US banks are also in trouble, correction, bigger trouble, and it looks like the media is covering for them.

Report Says Half Of America’s Banks Are Potentially Insolvent

The Telegraph: Half of America’s banks are potentially insolvent – this is how a credit crunch begins 

The twin crashes in US commercial real estate and the US bond market have collided with $9 trillion uninsured deposits in the American banking system. Such deposits can vanish in an afternoon in the cyber age. 

The second and third biggest bank failures in US history have followed in quick succession. The US Treasury and Federal Reserve would like us to believe that they are “idiosyncratic”. That is a dangerous evasion. 

Almost half of America’s 4,800 banks are already burning through their capital buffers. They may not have to mark all losses to market under US accounting rules but that does not make them solvent. Somebody will take those losses. 

“It’s spooky. Thousands of banks are underwater,” said Professor Amit Seru, a banking expert at Stanford University. “Let’s not pretend that this is just about Silicon Valley Bank and First Republic. A lot of the US banking system is potentially insolvent.” 

 Read more .... 

WNU Editor: A sobering post to read.

U.S. Banking Crisis Expanding

 

Axios: The regional banking crisis is expanding 

Federal Reserve chair Jay Powell yesterday said that the U.S. banking system is "sound and resilient." 

The big picture: It was akin to a sports team owner giving the coach a vote of confidence. If you're compelled to say it, things really aren't going well. 

Driving the news: PacWest reportedly is exploring strategic options, including a possible sale, acknowledging "discussions are ongoing" with "several potential partners and investors." 

* Shares in the Los Angeles-based lender were down 71% on the year as of yesterday's market close, and got further routed at today's open.  

Read more ....  

WNU Editor: The American public is losing confidence ..... About Half in U.S. Worry About Their Money's Safety in Banks (Gallup).

U.S. Banking Crisis Grows

 

CNBC: PacWest falls more than 50% after hours on report bank is weighing sale  

PacWest Bancorp shares tumbled 57% in extended trading on Wednesday following a report that the bank is weighing strategic options, including a potential sale. 

The regional bank has been assessing options, including a breakup or a capital raise, CNBC confirmed, according to one person familiar with the matter. 

Bloomberg first reported the news late Wednesday. The shares of many West Coast regional banks have been hit particularly hard since the collapse of Silicon Valley Bank in March, in part because of concerns that their customer bases are similar. 

This week, First Republic Bank was seized by regulators and sold to JPMorgan Chase.  

Read more .... 

Update: Here We Go Again: Troubled California Bank PacWest Craters 60% On Report It Is Seeking Buyers Or Capital Raise (Zero Hedge)  

WNU Editor: The expectation is that more banks are going to fail .... US Regional Banks Slump as Rout Deepens on First Republic Flop (Bloomberg).

First Republic Bank Sold To JPMorgan Chase After Second Biggest Bank Failure In US History

 

Daily Mail: JPMorgan takes control of First Republic's $92 BILLION deposits but not company's $100B corporate debt or preferred stock after buying bank 

* Regulators seized the bank on Monday and a deal to sell its assets was struck 

* San Francisco-based First Republic had total assets of $229.1 billion as of April 13 

 First Republic Bank has been sold to JPMorgan Chase after regulators seized it on Monday, making it the third major bank to fail in two months. 

The California Department of Financial Protection and Innovation (DFPI) said it closed the San Francisco-based bank and agreed on a deal to sell its assets after it had failed to come up with a workable rescue plan. 

DFPI appointed the Federal Deposit Insurance Corporation (FDIC) as a receiver, and said it accepted a bid from JPMorgan Chase Bank to assume all deposits.  

Read more ....  

WNU Editor: I do not share the view that this part of the US banking crisis is over .... Jamie Dimon says ‘this part of the crisis is over’ after JPMorgan Chase buys First Republic (CNBC). 

 First Republic Bank Sold To JPMorgan Chase After Second Biggest Bank Failure In US History  

First Republic Bank seized, sold to JPMorgan Chase -- AP  

JPMorgan snaps up First Republic's assets in U.S. auction -- Reuters  

US regulators seize California's First Republic in latest banking failure -- France 24  

First Republic: JP Morgan snaps up major US bank -- BBC  

JP Morgan to snap up most of failed US bank First Republic -- The Guardian  

US authorities 'auction' First Republic Bank to JPMorgan after second biggest bank failure in history -- ABC News Australia

Are Certain Nations And Global Business Interests Transferring Their Assets And Commitments Away From The U.S.?

The Hill: Is there a worldwide run on the Bank of the United States of America?  

In talking this week with a friend about the United States seemingly imploding from within across multiple sectors, my friend stressed: “It’s not just from within. There is a run on the United States from certain nations and business interests around the world. Just like there was a run on banks after the collapse of Silicon Valley Bank, many nations are either thinking about — or actually proceeding with — transferring at least a portion of their allegiance, assets and commitments from the ‘Bank of the U.S.’ to the ‘Bank of China’ or elsewhere.” 

This was not just some person sitting on a porch casually talking about current events while whittling a stick waiting for his Social Security or pension check to hit the mailbox. This was a former high-level U.S. government official, now a CEO, someone who sits on the boards of directors for multiple companies. He has massive real-world and business experience and believes the United State may be on the verge of collapse. 

Read more ....  

WNU Editor: It was not only the financial and economic sanctions the US imposed on Russia that was a wake-up call for the global community on what the US could do if they run afoul of US policies, but it was also the US threatening countries and global business interests that they could be next if they continue to do business with Russia or Russia-linked businesses. 

No one wants their monies controlled in such a manner. Hence the move away from US banks and financial institutions.

One Of The World's Biggest Hedge Funds Blames Social Media For Recent Bank Failures

Fortune: One of the world’s richest men knows why Silicon Valley Bank really failed: ‘People on iPhones’ 

Since the fall of Silicon Valley Bank, experts and market watchers have openly worried that the collapse of that institution, along with Signature Bank and Silvergate Bank, could lead to a contagion that would spread to the rest of the financial sector. 

But the CEO of a top private equity group doesn’t think that will happen because of the specific tech-based frenzy around SVB. “This crisis was caused by people on iPhones and other devices, hearing on social media that some bank might be in trouble,” Blackstone CEO Steve Schwarzman said in an interview with Bloomberg in Tokyo on Thursday. “They responded with huge withdrawals in a very short period of time, collapsing the bank.” 

Schwarzman, whose company manages $975 billion worth of assets, added that the current banking turmoil was unlike a “conventional crisis.” In SVB’s case, rather than holding risky assets, they had an imbalance of otherwise very secure bond assets that matured on a longer timeline. As the Fed hiked interest rates, the value of those bonds dipped, but would have been repaid in time if not for the bank run.  

Read more ....  

WNU Editor: Here we go again. Blame regular people for banks collapsing, and try to make the case why social media and free speech should be restricted/censored. Here is a heads-up. In the coming weeks Japanese banks may be the next major financial group facing problems that may need a bail-out.

Swiss Finance Minister Says Credit Suisse Wouldn’t Have Lasted Another Day

 

Bloomberg: Credit Suisse Wouldn’t Have Lasted Another Day, Minister Says 

The Swiss government was compelled to intervene to save Credit Suisse Group AG as the troubled bank wouldn’t have survived another day of trading amid a crisis of investor confidence, Finance Minister Karin Keller-Sutter said. 

 “CS would not have survived Monday,” Keller-Sutter said in an interview with Zurich newspaper NZZ. “Without a solution, payment transactions with CS in Switzerland would have been significantly disrupted, possibly even collapsed.” 

The impact of a disorderly bankruptcy may have been as much as double Swiss economic output, the minister said, citing expert estimates. More broadly, “we should have expected a global financial crisis” as “the crash of CS would have sent other banks into the abyss.”  

Read more ....  

Update: Credit Suisse accessed billions in liquidity last weekend - finance minister (Reuters)  

WNU editor: Finance Minister Karin Keller-Sutter is confirming what all the doomsayers were saying last week. The global banking system was one day away from experiencing a complete meltdown.

Is Deutsche Bank The Next Bank That Needs To Rescued?

 

CNBC: Deutsche Bank shares slide after sudden spike in the cost of insuring against its default 

* The German lender’s shares retreated for a third consecutive day and have now lost more than a fifth of their value so far this month. 

* The emergency rescue of Credit Suisse by UBS, in the wake of the collapse of U.S.-based Silicon Valley Bank, triggered contagion concern among investors, which was deepened by further monetary policy tightening from the U.S. Federal Reserve on Wednesday. 

Deutsche Bank shares fell on Friday following a spike in credit default swaps Thursday night, as concerns about the stability of European banks persisted. 

The Frankfurt-listed stock was down 14% at one point during the session but trimmed losses to close 8.6% lower on Friday afternoon. 

The German lender’s Frankfurt-listed shares retreated for a third consecutive day and have now lost more than a fifth of their value so far this month. Credit default swaps — a form of insurance for a company’s bondholders against its default — leapt to 173 basis points Thursday night from 142 basis points the previous day.  

Read more .... 

Update #1: Meltdown in Deutsche Bank Shares Shows Banking Crisis Is Not Yet Over (US News and World Report)  

Update #2: Deutsche Bank, UBS stocks sink as fear of European banking crisis returns (CNN)  

WNU Editor: Concerns on the stability of the global banking system continue .... Moody’s sees risk that U.S. banking ‘turmoil’ can’t be contained (Market Watch). 

Update #3: This is not a sign of stability .... US Banks Are Still Drawing on the Fed for $164 Billion of Emergency Cash (Bloomberg).

Global Central Banks Are Trying To Stop A Possible Liquidity Crisis

 

CNN: Fed and other central banks try to head off crisis by keeping dollars flowing 

The US Federal Reserve and several other major central banks announced a coordinated effort Sunday night to boost the flow of US dollars through the global financial system with the aim of keeping credit flowing to households and businesses. 

“The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing a coordinated action to enhance the provision of liquidity via the standing US dollar liquidity swap line arrangements,” the central banks said in a joint statement. 

Sunday’s statement came just hours after Swiss authorities orchestrated an emergency takeover of Credit Suisse by UBS. Credit Suisse — one of the 30 most important banks in the global financial system — was bleeding money last week after investor and customer confidence collapsed.  

Read more ....  

Update #1: Central banks try to calm markets after UBS deal to buy Credit Suisse (Reuters)  

Update #2: Fed Panics, Announces "Coordinated" Daily US Dollar Swap Lines To Ease Banking Crisis (Zero Hedge)  

WNU editor: When “The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are forced to put out an announcement on a Sunday to calm markets, that is when you know that we are in the middle of a global banking crisis.

UBS To Buy Credit Suisse To Quell The Growing Global Bank Crisis

 

Washington Post: Swiss banking giants combine to quell growing global bank crisis 

Credit Suisse, the battered Swiss bank, has agreed to an emergency takeover by its rival UBS, Switzerland’s largest bank, a move engineered by the Swiss government to stave off immediate concerns of a global financial crisis. 

The hasty deal, which was announced Sunday following a weekend of negotiations, offers a temporary reprieve after days of panic in global markets triggered by the collapse of Silicon Valley Bank. 

But it does little to ease longer-term worries of instability in the banking system. A “swift and stabilizing solution was absolutely necessary,” Alain Berset, president of the Swiss Confederation, said during a Sunday afternoon news conference.

The UBS deal, he added, was “the best solution for restoring the confidence that has been lacking in financial markets recently.” 

Read more ....  

WNU Editor: These people are really pissed-off .... Credit Suisse says $17 billion debt worthless, angering bondholders (Reuters). 

Sighhhh .... they say it is not a bailout, but it is a bailout. 

UBS To Buy Credit Suisse To Quell The Growing Global Bank Crisis  

UBS to acquire Credit Suisse -- UBS  

UBS to buy Credit Suisse for nearly $3.25B to calm turmoil -- AP  

UBS buys Credit Suisse for $3.2 billion as regulators look to shore up the global banking system -- CNBC

UBS chairman on Credit Suisse deal: We hoped this day would not come -- Yahoo Finance 

UBS To Buy CS For $3 Billion As AT1 Bonds Get Wiped Out In Record Bail-In; Swiss Govt Grants CHF9BN Guarantee; SNB Offers $100 Billion Liquidity Backstop -- Zero Hedge

Has The U.S. Dollar Become An At-Risk Currency?

The ongoing global sanctions against Russia in the wake of its invasion of Ukraine may have rightly isolated Moscow, but they've also weakened the standing of the US dollar in the process. Shutterstock  

Jay Norton, NYPost: Why the US dollar has become an at-risk currency 

Everywhere you turn there’s chatter about the ongoing US economic sanctions against Russia. The Russian Central Bank, Russian banks, Russian companies, Russian oligarchs — and anyone caught helping them — have seen their fortunes entangled since Moscow invaded Ukraine just over a year ago. 

From Davos to Aspen, American Treasury officials tout the unprecedented scale and scope of this powerful economic weapon. 

And why not? The effort has been impressive. 

The US government task forces have beached scores of yachts, grounded planes, blocked hundreds of millions of dollars of central bank assets and cut Russian financial institutions off from the global SWIFT financial system. 

Sanctions are an ancient game: in 432 B.C., Athens crushed its rival — Megara — by banning their traders from Athenian marketplaces. 

 For the US government in the 21st century, economic sanctions aren’t merely second nature, they’ve become a central tool of foreign policy. More than 10,000 people and dozens of countries are subject to sanctions worldwide.  

Read more ....  

Update: NYP: The US dollar has become an at-risk currency (Mordern diplomacy).  

WNU Editor: A year before Russia's invasion of Ukraine I predicted that the US dollar will continue to exist as the global reserve currency for the next 2 to 3 decades (if not more). I do not believe this anymore. 

Money printing followed by massive spending has created a debt and inflation crisis that the US shows no signs of stopping. Coupled with a sanctions war against the resource super power of the world (Russia), and the start of a sanctions war against the world's manufacturing super power (China), I do not have hope that the US dollar will continue to dominate as the world's leading currency. I now give it 5 to 10 years, and maybe less.

US Mid-Sized Banks Sound The Alarm On The Stability Of The US Banking System

Axios: Midsize banks plead for unlimited FDIC backstop for two years 

A coalition of midsize U.S. banks is calling on the government to insure all deposits for the next two years, in the wake of Silicon Valley Bank's emergency rescue that insured all of the firm's deposits regardless of size.  

Driving the news: The Mid-Size Bank Coalition of America sent a letter to regulators arguing that a temporary suspension of the FDIC's deposit insurance limit is necessary to ensure that smaller banks can navigate the current banking crisis, Bloomberg reported. 

* "Doing so will immediately halt the exodus of deposits from smaller banks, stabilize the banking sector and greatly reduce chances of more bank failures," the letter said, according to Bloomberg. 

 * Tesla CEO Elon Musk also endorsed the idea in a Twitter post early Saturday, saying the move was needed to "stop bank runs."  

Read more ....  

WNU Editor: According to some reports an incredible 200 banks are now at risk .... Nearly 200 banks at risk for same fate as SVB: study (NYPost). 

As to what do I expect next. The Biden administration has no choice. They will do everything in their power to make sure the banking system does not collapse. That is why I expect massive bailouts, a return to quantitative easing, and money printing. And while the banking system will be saved, high inflation is going to be the result for years to come.

Another Major US Bank On The Verge Of Insolvency

 

Bloomberg: First Republic Bank Is Said to Weigh Options Including a Sale 

First Republic Bank, the San Francisco-based lender that was cut to junk by S&P Global Ratings and Fitch Ratings on Wednesday, is exploring strategic options including a sale, according to people with knowledge of the matter. 

The bank, which is also weighing options for shoring up liquidity, is expected to draw interest from larger rivals, said some of the people, all of whom requested anonymity discussing confidential information. No decision has been reached and the bank could still choose to remain independent, they said. 

A spokesperson for First Republic Bank declined to comment. First Republic said Sunday that it had more than $70 billion in unused liquidity to fund operations from agreements that included the Federal Reserve and JPMorgan Chase & Co. Still, its stock fell 21% Wednesday in New York trading to a decade-low of $31.16, giving it a market value of $5.8 billion.  

Read more ....  

Update #1: First Republic Bank weighing options including sale - Bloomberg News (Reuters)  

Update #2: First Republic Bank, which was downgraded to junk by S&P and Fitch, is looking at a possible sale: Bloomberg (Business Insider)  

WNU Editor: When you have a credit rating agency like Moody's downgrading the entire US banking system (link here) .... I repeat .... downgrading the entire US banking system, you know you have a problem. Here is an easy prediction. Expect ,ore bank closures in the coming days.

Swiss Central Bank Moves To Save Credit Suisse As The Banking Crisis Continues

 

CNBC: Swiss National Bank says it will provide Credit Suisse with liquidity if necessary 

* A statement from the Swiss Financial Market Supervisory Authority and the SNB said that Credit Suisse “meets the capital and liquidity requirements imposed on systemically important banks” and that the central bank will step in if the situation changes. 

* Credit Suisse’s stock was under pressure after the disclosure of “material weakness” in financial reporting and the bank’s biggest backer saying it would not provide additional financing. 

* The American depositary receipts of Credit Suisse pared losses after the announcement from regulators. 

The Swiss National Bank said Wednesday that Credit Suisse is currently well capitalized and that the central bank will provide additional liquidity if necessary, as regulators on both sides of the Atlantic tried to calm fears of a spreading crisis. 

A statement from the Swiss Financial Market Supervisory Authority and the SNB said that Credit Suisse “meets the capital and liquidity requirements imposed on systemically important banks” and that the central bank will step in if the situation changes. 

The regulators also said that the failure of two U.S. regional banks in the past week does not pose a “direct risk of contagion” to Swiss banks.  

Read more ....  

Update: Swiss central bank says it is ready to provide support to Credit Suisse (CNN)  

WNU Editor: As predicted by WNU earlier today .... Europe's Banking Crisis Worsening. Credit Suisse Shares Hit An All Time Low.

Credit Suisse is too big to fail, and it is failing. The Swiss Central Bank had to intervene. The last thing that the EU banking system needs right now is a liquidity crisis.  

Update #2: I disagree with the tweet below that was made yesterday by the German Chancellor. We should all be concerned and worried.

Scholz Tells Germans Not to Worry About Savings After SVB Crash https://t.co/IXclpoLSU7

— TradFi News (@TradFiNews) March 14, 2023

U.S. Banking Crisis Continues

 

Daily Mail: First Republic cut to junk status, Big Four US banks hammered and Credit Suisse shares down more than 25% - as BlackRock CEO Larry Fink warns 'more shutdowns are coming' after SVB collapse 

* Wall Street's main stock indexes dropped on Wednesday on fresh fears 

* Worries related to Credit Suisse spurred fears of further banking crisis 

* The Big Four trillion-dollar US banks bled away yesterday's gains in early trading Plunging bank stocks drove 

Wall Street's main stock indexes lower on Wednesday, as turmoil at Credit Suisse renewed fears of a banking crisis and BlackRock CEO Larry Fink warned 'more shutdowns are coming' after the collapse of Silicon Valley Bank.

S&P 500 Banks Industry Group Index dropped more than 4 percent in morning trading, and the Dow Jones Industrial Average fell more than 450 points, or 1.42 percent.

Shares of First Republic, one of the regional banks swept up in contagion fears after the collapse of Silicon Valley Bank, dropped up to 17 percent after the bank's bond rating was downgraded to Junk status by Standard & Poors.  

Read more ....  

WNU editor: Not a good day for US stocks .... Wall Street tumbles as Credit Suisse sparks fresh bank selloff (Reuters).

Europe's Banking Crisis Worsening. Credit Suisse Shares Hit An All Time Low

 

CNBC: Credit Suisse shares tank after Saudi backer rules out further assistance 

* Shares of embattled bank Credit Suisse hit another all-time low for a second consecutive day. 

* edit Suisse’s biggest backer, Saudi National Bank, has said it won’t provide further financial help for the bank. 

* Speaking to CNBC’s Hadley Gamble during a panel session in Riyadh, Saudi Arabia, on Wednesday morning, Credit Suisse Chairman Axel Lehmann declined to comment on whether his firm would need any sort of government assistance in the future. 

Shares of Credit Suisse on Wednesday plunged to a fresh all-time low for the second consecutive day after a top investor in the embattled Swiss bank said it would not be able to provide any more cash due to regulatory restrictions. 

Trading in the bank’s plummeting stock was halted several times throughout the morning as it fell below 2 Swiss francs ($2.17) for the first time.  

Read more ....  

WNU editor: WNU has been warning about Credit Suisse since last year .... Bank Giant Credit Suisse Says It Is Not Facing Collapse (October 3, 2022).  

Credit Suisse is finished. The only thing that can save it now is a consortium of banks bailing them out (which I doubt), or the Swiss government stepping in. Bottom line. The bank will probably be saved, but it is going to be very costly and it is going to take years for Credit Suisse to recover. 

Europe's Banking Crisis Worsening. Credit Suisse Shares Hit An All time Low  

European stocks slide 2.7% as Credit Suisse craters and banks briefly halted from trade: Live updates -- CNBC 

Credit Suisse shares plunge to record low as top shareholder rules out investing more – business live -- The Guardian  

Credit Suisse shares plunge as bank fear widens -- BBC  

Credit Suisse slides in Europe bank rout as SVB fallout grows -- Reuters  

Credit Suisse CDS Reach Crisis Levels as Banks Rush to Buy Protection -- Bloomberg  

Credit Suisse stock slump triggers close monitoring by regulators -- Reuters  

Credit Suisse shares tumble to new record low as European banking sector reels -- Market Watch

Signature Bank Was Forced To Close By Regulators This Weekend. This Is The Same Bank That Closed President Trump's Bank Account In 2021 Over January 6

Signature Bank famously closed President Trump's bank accounts to signal its virtue. Go woke, go broke.https://t.co/PzGfq2J2sg

— David Shafer (@DavidShafer) March 13, 2023

WNU Editor: More details on former President Trump losing his account at Signature Bank is here .... Deutsche Bank and Signature Bank cut future ties with Trump, citing Capitol riots (NBC). 

Speaking of former President Trump.

The main stream media narrative is to blame former President Trump for this banking crisis .... Why Trump is being called out in the Silicon Valley Bank collapse (Business Insider). Cannot say that I am surprised. The Biden administration and their media allies cannot say that the real reason why these banks are failing is due to inflation forcing the Fed to raise interest rates. High interest rates that have now collapsed the assets that these affected bank had in long term US Treasury bond portfolios (see below).

Silicon Valley Bank did not fail because of loan defaults. It failed because rapidly rising interest rates collapsed the value of its long term bond portfolio. #Bidenflation is the cause of these bank failures.

— David Shafer (@DavidShafer) March 13, 2023

Growing Calls For The U.S. Government To Impose More Drastic Measures On The Banking Crisis

 

Daily Mail: New fears of banking contagion are triggered by crisis that killed Silicon Valley Bank, as billionaire economist Bill Ackman demands Biden 'guarantee all deposits now' - or else America's economy could melt down 

* Hedge fund boss Bill Ackman today warned the 'economy will not function' unless Joe Biden 'guarantees all deposits now' as the crisis hit the Big Four banks 

* Among the worst affected regional banks was Western Alliance which saw its stock plunge by 75 percent as the opening bell sounded on Wall Street 

* 'The Federal Deposit Insurance Corporation needs to explicitly guarantee all deposits now. 

Hours matter,' Ackman said as he called for government backing At least 20 regional banks were hit with trading halts this morning as turmoil sparked by Silicon Valley Bank's collapse gripped Wall Street. 

Hedge fund boss Bill Ackman warned the 'economy will not function' unless Joe Biden 'guarantees all deposits now' as the contagion spread to the Big Four trillion-dollar US banks. 

Wells Fargo's stock dropped 7.5 percent, Bank of America fell 7.4 percent, Citigroup plunged 5.8 percent and JP Morgan was down 2.7 percent. 

Read more ....  

WNU Editor: The stress indicators are flashing red .... Market stress indicators react sharply after U.S. bank failures (Reuters). 

So what is my prediction. 

My optimistic take is that this crisis is going to cost US taxpayers hundreds of billions if not more. This also guarantees a recession in the coming months. Stock markets will be negatively impacted. And the debt crisis is also gong to get worse. Throw in inflation, high interest rates, and it is obvious that everyone's balance sheet and take-home is going to take a hit. 

You do not want to know what my pessimistic take on this crisis is. When I think about it I feel like throwing up.

President Biden's Assurances That The US Banking Is Safe Is Not Convincing The Markets

 

Daily Mail: Trading temporarily HALTED in dozens of banks after shares fell by up to 75% when market opened at 9.30am - moments after Biden said 'US banking is safe' - as contagion spreads to heavyweights Wells Fargo, Bank of America and JP Morgan 

* Western Alliance Bancorp's stock price dropped by three quarters, First Republic Bank dived 67 percent and PacWest Bancorp plunged more than 35 percent

* Major US banks were also hit: Wells Fargo down 7.5 percent, Bank of America 7.4 percent, Citigroup 5.8 percent and JP Morgan 2.7 percent 

* Biden attempted to shore up trust just minutes before the market opened, telling reporters: 'Americans can have confidence that the banking system is safe' 

Trading was temporarily halted in dozens of regional banks this morning as shares fell by up to 75 percent when the market opened after Joe Biden claimed 'US banking is safe.' 

Major US banks were also hit as contagion fears spread through the sector with Wells Fargo plummeting 7.5 percent, Bank of America falling 7.4 percent, Citigroup plunging 5.8 percent and JP Morgan down 2.7 percent. 

Regional bank Western Alliance saw its stock price plunge by three quarters as the opening bell sounded on Wall Street, while shares in First Republic dived 67 percent and PacWest by more than 35 percent. 

Trading circuit breakers were swiftly implemented to protect the market from rampant volatility.

Read more .... 

Update: Bank stocks tumble; others rise on hopes for easier rates (AP) 

WNU Editor: It looks like more banks are on the verge of closing .... First Republic leads losses among U.S. regional banks on contagion fears (Reuters). More here .... First Republic drops 60%, leads decline in bank stocks despite government’s backstop of SVB (CNBC), and here .... US Regional Banks Remain Under Pressure as First Republic Sinks (Bloomberg). 

Update #2: It looks like the crisis is spreading overseas .... Credit Suisse CDS Hits Record High As Silicon Valley Banking Crisis Spreads To Europe (Zero Hedge).