More Banks Shut Down, the Domino Effect Continues

13-Mar-2023

Inter-Bank Liquidity Almost Completely Frozen - They won't Lend to EACH OTHER!

The banking system appears to be melting down in the United States as Inter-Bank Liquidity has fallen to almost zero.

The chart below shows it:

What this means is that banks are NOT lending to each other; not even for overnight, or over a weekend!

When Bankers stop lending to EACH OTHER, there are gigantic trust issues.  The Banking system seems to be coming apart in real time, today.

Bank Stocks Free-Falling -MULTIPLE TRADING HALTED

 13 MARCH 2023  

Trading of the stock in Credit Suisse was HALTED overnight after another 15% plunge in its stock value.  Commerzbank dropped 11%. In the USA, Federal Republic dropped another 66%, with Western Alliance Bancorp down 52% and PacWest down 37% in pre-market trading.

Despite a staggering loosening of credit available to banks from the Federal Reserve over the weekend, Investor confidence is still plummeting for most of the same banks that saw this trouble late last week.

Whether these banks can avail themselves of the new, loosened credit resources and possibly save themselves today, remains to be seen.

During the weekend, a major bank started making headlines, when Depositors at Wells Fargo reported problems with account balances and funds availability had NOT been fixed by the bank.

Moreover, Depositors in Bank of America put videos on social media showing lines at some BoA branches filled with customers who could not get answers from the bank's customer service department.

Whether any of this turns into BANK RUNS today, remains to be seen. 

Look:

Looks as though Investors are ***NOT*** accepting government assurances about Banks.  Biden just came out at the White House to tell the public "the Banks are safe" but stocks now dropping for ADDITIONAL Banks:

First Republic Bank down 66%

Western Alliance Bancorp down 75%

PacWest Bancorp down 46%

Zions Bancorp down 44%

Bank of Hawaii down 42%

Customers Bancorp down 54%

East West Bancorp down 32%

Comerica down 39%

TRADING HALTED IN MULTIPLE BANK STOCKS AFTER OPENING BELL:

UPDATE 10:34 AM EST --

Majority of trading halts have re-opened for trading . . .  Let's see if the plunge resumes.

Big players in global finance are saying we're doomed . . . .

10:39 AM -- First Republic Bank, halted again, down 77%.

UPDATE 11:29 AM EST --

Europe is tanking too.

Large declines in the shares of EU banks:

Credit Suisse fell by 14%

UniCredit Bank fell by 9%

KbW Bank fell by 13.5%

Sabadell Bank fell by 11%

Santander Bank is down 8%

French minister tells investors to ‘calm down’ after banks stocks fall

France’s Finance Minister Bruno Le Maire told investors on Monday to “calm down” after stocks in French banks including Societe Generale and BNP Paribas sank following the collapse of US lender Silicon Valley Bank.

“Calm down, calm down, and just have a look at the reality. The reality is that the French banking system is not exposed to the SVB,” Le Maire told reporters in Brussels.