UPDATE GIGS MEDIAUPDATE GIGS MEDIA
  • Home
  • Entertainment
  • Business & Finance
  • Education
    • Scholarships
  • Lifestyle
    • Health & Fitness
    • Travel
    • Dating & Relationships
    • Do it yourself
  • Tech
  • Privacy Policy
Facebook Twitter Instagram
Facebook Twitter Instagram
UPDATE GIGS MEDIAUPDATE GIGS MEDIA
CONTACT US
  • Home
  • Entertainment
  • Business & Finance
  • Education
    • Scholarships
  • Lifestyle
    • Health & Fitness
    • Travel
    • Dating & Relationships
    • Do it yourself
  • Tech
  • Privacy Policy
UPDATE GIGS MEDIAUPDATE GIGS MEDIA
Home » Banks fall again as bailouts fail to restore calm
Finance & business

Banks fall again as bailouts fail to restore calm

adminBy adminMarch 18, 2023No Comments4 Mins Read
Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit Email
68836311-11873689-image-m-72_1679087054720.jpg
Share
Facebook Twitter LinkedIn Pinterest Email


Bank shares tumble on both sides of Atlantic as efforts to shore up financial system fail to calm investor nerves

  • Troubled lenders in the US and Europe were on the slide once again
  • Latest sell-off came just a day after First Republic was handed a £25bn lifeline
  • That rescue package itself came just hours after £45bn bailout of Credit Suisse

By Mark Shapland For The Daily Mail

Published: 17:50 EDT, 17 March 2023 | Updated: 18:44 EDT, 17 March 2023

Bank shares tumbled on both sides of the Atlantic as efforts to shore up the financial system failed to calm investor nerves.

After a brutal week on markets around the world, troubled lenders in the US and Europe were on the slide once again – despite the bailouts of Zurich-based Credit Suisse and San Francisco-based First Republic.

The latest sell-off came just a day after First Republic was handed a £25billion lifeline in a desperate bid to boost confidence.

That rescue package itself came just hours after the £45billion bailout of Credit Suisse.

But it did little to calm the markets left reeling by the collapse of three US regional banks in quick succession – Silvergate on March 8, Silicon Valley Bank (SVB) on March 10 and Signature Bank two days after that.

In the red: Troubled lenders in the US and Europe were on the slide once again

In the red: Troubled lenders in the US and Europe were on the slide once again

With investors fearing worse is still to come, First Republic crashed another 32.8 per cent in early trading. Other regional lenders to feel the heat included Pacific West which fell 7.2 per cent, Western Alliance which lost 15.1 per cent, Zions Bancorporation which dropped 3.9 per cent and Comerica which dipped 5.2 per cent. In Europe, Credit Suisse plunged 10.9 per cent.

The fallout was felt on stock markets around the world with the FTSE 100 giving up early gains to close down 1 per cent, or 74.63 points, to 7335.4.

Neil Wilson, a strategist at Markets.com, warned of ‘fear and loathing in banking and markets’, adding: ‘We are not out of the woods.’

It sets the scene for a rocky weekend for industry chiefs, regulators, central bankers and government ministers and officials before the markets reopen on Monday morning.

The sell-off came despite the fact that, late on Thursday night, a group of the largest banks in America came together to pump £25billion into First Republic.

Advertisements
Advertisements

There are now serious questions over what can be done to stem the crisis engulfing the banking sector as confidence continues to be eroded.

Investors heavily criticised the decision to pump aid into First Republic, saying it was a mistake to expose the country’s biggest lenders to such a high risk asset. Bill Ackman, of hedge fund management company Pershing Square, said in a tweet that it had created ‘a false sense of confidence’ in the lender and spread financial contagion.

‘It raises more questions than it answers – it’s bad policy,’ the investor continued. ‘I have said before that hours matter. We have allowed days to go by. Half-measures don’t work when there is a crisis of confidence.’

The European Central Bank yesterday called an unscheduled meeting to discuss how to stop contagion and the state of banking in the eurozone.

The Bank of England said it was monitoring the situation and remains ‘engaged’ with the banks and regulators at all times.

But there was little respite for Credit Suisse as the bank, founded in 1856, was hit with legal action from a group of investors who claim it overstated its prospects before this week’s crash.

The Swiss authorities are exploring a possible tie-up with UBS to shore up Credit Suisse – but it is understood that there is push-back on the idea. UBS wants to focus on its own wealth management strategy and is reluctant to take on risks related to Credit Suisse, sources say.

Analysts believe a break-up of Credit Suisse is still the most likely solution.

Last week, Credit Suisse admitted it had ‘material weaknesses’ in its reporting and controls procedures when it published its delayed 2022 annual report.

Stuart Cole, head macro economist at liquidity provider Equiti Capital, said: ‘We’re not out of the woods yet by any means.’ Craig Erlam, analyst at Oanda, said: ‘We need to get through the weekend without more drama.’

Share or comment on this article:

Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.

POPULAR MONEY SECTIONS

More latest updates

  • Why some states are not domesticating the Nigerian Startup Act
    Why some states are not domesticating the Nigerian Startup Act
    by admin●March 15, 2023
  • MTN’s 2022 financials show growth in subscribers and mobile money
    MTN’s 2022 financials show growth in subscribers and mobile money
    by admin●March 15, 2023
  • Sycamore is simplifying lending for Nigerians
    Sycamore is simplifying lending for Nigerians
    by admin●March 15, 2023
  • How to file tax returns with the eTIMs taxpayers portal in Kenya
    How to file tax returns with the eTIMs taxpayers portal in Kenya
    by admin●March 15, 2023

Share this:

  • Tweet
Advertisements

Advertisements

Related

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
admin
  • Website

Related Posts

Savers snub stocks and funds amid turbulence

February 16, 2023

Virgin rocket flop is NOT the end of Britain’s race into space

January 15, 2023

Hong Kong investors demand HSBC splits off Asia business

December 16, 2022

The 77-year-old who’s taken British Gas, BT and her council to court… and WON! 

November 16, 2022

Why are banks and building societies now raising rates so rapidly?

October 17, 2022

Inside Lamborghini’s pop-up sites setup in popular resorts to target the super-rich

September 17, 2022
Stay In Touch
  • Facebook
  • Twitter
  • Instagram
  • YouTube
Don't Miss
Tech

Has NFT found its biggest mainstream proponent yet in Africa?

By adminApril 13, 2022

The past few days have been good for NFT in Africa—Nigeria and Ghana, to be…

Share this:

  • Tweet

👨🏿‍🚀 TechCabal Daily – MTN is accelerating mobile money in Nigeria

April 13, 2022

Didi shuts down operations in South Africa

April 13, 2022

Back from the future: How embedded finance changed the world

April 13, 2022

Can Hytch succeed where GoMyWay failed?

April 13, 2022

More African central banks are considering digital currencies

April 13, 2022

This bootstrapped drone startup is promoting smart farming in Zimbabwe

April 13, 2022

The Next Wave: Africa does not know itself

April 13, 2022

TechCabal Daily – Kenya’s new law for content creators

April 14, 2022

INDUSTRY EXPERTS DISCUSS THE GROWTH AND FUTURE OF FINTECH IN NIGERIA AND INDIA IN SYMPOSIUM BY CLI COLLEGE, NIGERIA AND CHRIST UNIVERSITY, INDIA

April 14, 2022

28 days after launching investment arm, Luno crosses 10m user base

April 14, 2022

👨🏿‍🚀 TechCabal Daily – The war for Twitter

April 15, 2022

Digital Nomads: Julian Owusu’s journey from football to fintech

April 15, 2022

In the wake of explosive accusations against Africa’s most valuable startup, Flutterwave co-founder speaks

April 16, 2022
Advertise with us
update gigs advert images
LATEST

How WomHub wants to facilitate female entrepreneurship in Cape Town

March 22, 2023

Factor[e] launches $600,000 venture studio for Africa

March 22, 2023

Interview with Dieudonné Kayembe, founder of Motema based in Kinshasa

March 22, 2023
About Us
About Us

We are dedicated to bringing you news from around the world that is entertaining, educative, informative and self inspiring.. Your source for the lifestyle news.

We're accepting new partnerships right now.

Email Us: updatemedia050@gmail.com

Subscribe to Updates

Get the latest news from Update Gigs Media about entertainment, sports, lifestyle, art, design and business.

Facebook Twitter Instagram
© 2023 Designed by Ntechy Digital System.

Type above and press Enter to search. Press Esc to cancel.