Four largest US banks lost more than $52 billion in one day
In one day, the four largest banks in the United States lost more than $52 billion in market value. This is reported by Forbes.ru magazine.
According to the information received, the four largest US banks lost $52.4 billion of market value in a day. It is noted that investors in a hurry began to sell shares of JPMorgan Chase, Bank of America, Citigroup and Wells Fargo on Thursday. Investors were wary about their bond portfolios.
It is known that the sale of shares was provoked by the problems of a small California bank Silicon Valley Bank, which works with technology startups. The bank reported on Wednesday that it lost $1.8 billion after selling $21 billion in securities caused by a decline in customer deposits.
This situation forced investors to turn their attention to other banks, in which many of them held long-term securities, including Treasury bonds. These are the funds that were received from the influx of deposits during the pandemic.
“Silicon Valley Bank is just the tip of the iceberg,” said Christopher Whalen, chairman of financial advisory firm Whalen Global Advisors. In his opinion, many large players may survive the upcoming instability in the country, but many small companies will have to raise equity capital.
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