- It’s PacWest and Western Alliance
- They led the “avalanche” among regional banks in the United States
- Their stock prices are falling amid expectations of an increase in interest rates
- It could also be a new round of the banking crisis.
Yesterday, May 2, trading on the positions of Western Alliance and PacWest opened with a huge minus. Quotes “sank” by 20.1% and 44.82%, respectively. Experts point to increased panic in society.
This is what the situation around PacWest looks like:
And so in the case of Western Alliance:
These banks control a total of $108.09 billion in assets. These are regional counterparties serving both private and large institutional clients.
However, there were no signs of deterioration in the financial situation. On Monday, May 1, the chairman of JPMorgan Chase noted that the US banking crisis is “over”. Recall that on the same day this company bought out First Republic Bank, which brings it closer to the status of an actual monopolist.
And earlier, at the end of March, PacWest announced that the outflow of client funds had slowed down. The fall in quotes, although not so noticeable, is also observed for a number of other positions. For example, the share price of the S&P Regional Banking ETF (KRE) fell 6.3%.
A new round of crisis in the US banking field can be explained by the expectation of an increase in interest rates. Recall that the probability that the Fed will continue to “tighten the screws” is over 80%.
We also reported that the FDIC (Federal Deposit Insurance Corporation) is targeting another crypto-friendly bank – CRB. At the same time, Republicans in Congress suspect that the federal authorities are deliberately putting pressure on the sector.