Wall Street’s 4 top banks just had $55 billion wiped off their market value in a single day.
Four of America’s biggest banks lost a combined $55 billion of market value in a single day as financial stocks plunged.
US bank shares took a beating Thursday amid fears of contagion effects from the turmoil at Silicon Valley Bank and Silvergate.
JPMorgan saw the biggest tumble in market value among US lenders, losing $22 billion.
(Markets Insider) JPMorgan Chase, Bank of America, Wells Fargo and Morgan Stanley – the four most valued US lenders – saw $55 billion wiped off their combined market capitalization on Thursday, Refinitiv data show.
JPMorgan, the biggest US bank, alone saw a $22 billion tumble in its market value as its stock slid 5.41% to $130.34.
Wall Street’s Bank of America lost $16.16 billion as its share price fell 6.20% to $30.54.
Wells Fargo and Morgan Stanley saw their market capitalization drop by $10.3 billion and $6.2 billion, respectively.
Among other major US banks, Goldman Sachs and Citi also witnessed significant declines in their share prices.
Credit Suisse Clients Withdraw Billions
Credit Suisse (NYSE:CS) clients have withdrawn billions of dollars.
In November, the bank warned investors in a 6-K filing of potential losses due to naked short covering.
Disarming these types of overleveraged positions won’t be easy.
Credit Suisse took a massive hit of $4.09 billion in Q3 and hinted at occurring losses in an upturn in markets.
Now Credit Suisse as postponed publication of its annual report, per Reuters — more on that below.
The bank hired 20 banks for a $4 billion injection in effort to pivot from Q3’s disaster.
Is Credit Suisse on the verge of collapsing?
(Reuters) Credit Suisse has postponed publication of its annual report after a last-minute call from the United States Securities and Exchange Commission (SEC), which raised questions about its earlier financial statements.
The unusual intervention by the U.S regulator is the latest blow to Credit Suisse as it attempts to rebuild investor confidence after a series of scandals and setbacks that have sent its shares plunging and led clients to withdraw billions.
Credit Suisse shares were close to their all-time low in Zurich on Thursday but later recovered much of a 6% loss.
Swiss financial regulator Finma told Reuters that Credit Suisse had informed it of the delayed publication.
“We are in contact with the bank,” Finma said.
What is Happening with Banks Right Now?
Banks are losing billions in liquidity leading many to believe a financial collapse is imminent.
In February, Credit Suisse reported that 2022 brought its biggest annual loss since the 2008 global financial crisis after rattled clients pulled funds from the bank, and it warned that a further “substantial” loss would come this year.
Among a string of scandals, Credit Suisse was hard hit by the collapse of U.S. investment firm Archegos in 2021 as well as the freezing of billions of supply chain finance funds linked to insolvent British financier Greensill.
Investors have been speculating that Credit Suisse will be the next bank to default — time will certainly tell.
“SVB collapse is the second-largest bank failure in US history”, says CNN.
Startup investors have shared their concerns on Twitter in regard to capital being held by the banks.
Many are urging one another not to use a bank at the moment, speculating that this is a sector-wide issue.
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Well do we need to pull our money from the banks?
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