by Kyle Becker, Becker News:
The worst may not be over. The Silicon Valley Bank and Signature Bank failures continue to roil stock markets and have cued further shock to the global banking system.
There was an uptick in the stock market on Tuesday, which followed in the wake of assurances from the Biden administration that business depositers in the failed banks would have their assets restored.
“The S&P 500 rose 1.5 percent in morning trading, recouping some of its losses from the rapid collapse of Silicon Valley Bank and Signature Bank, and pointing to a semblance of stability returning to financial markets,” the Times reported. “Investors appeared to take to heart assurances that depositors will be protected by federal authorities, helping to calm nerves in the banking sector.”
TRUTH LIVES on at https://sgtreport.tv/
“First Republic Bank, one of the banks most in the crosshairs of investors in recent days, was up nearly 50 percent, having fallen by a similar amount on Monday,” the Times added. “Western Alliance Bancorp rose roughly 40 percent, following a fall of nearly 50 percent. The KBW Bank index, which tracks the performance of 24 banks, rose over 4 percent, its best day in roughly four months.”
But those gains are in danger of being reversed, as Wednesday as seen the return of banking fears.
“Stock markets tumbled on Wednesday, as investors’ fears over the health of the banking industry resurfaced and spread around the world, undoing a rally on Tuesday when the panic appeared to pause,” the Times reported.
“On Wall Street, the S&P 500 fell 1.6 percent at the open of trading, reversing all of the previous day’s gains,” the Times added. “European markets were also hard hit, with stocks of many of the region’s biggest banks falling sharply, as anxiety persists about the fallout from the collapse of Silicon Valley Bank and Signature Bank, which were seized by regulators after suffering devastating runs on deposits.”