BANK RUN USA PANIC – Second USA Bank Collapses in 3 Days, Run of Withdrawals Causes Liquidity Crisis

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First Republic, Western Alliance seek to calm contagion worries from SVB meltdown

March 10 (Reuters) – U.S. lenders First Republic Bank (FRC.N) and Western Alliance (WAL.N) said on Friday their liquidity and deposits remained strong, aiming to calm investors worried of a spill-over of risks from troubled startup focused-bank SVB Financial Group (SIVB.O).

Shares of the three banks slumped between 20% and 60% in choppy trading that led to halts and resumptions.

The disclosures come after banking regulators shut California-based SVB after a failed share sale that triggered worries of a liquidity crisis, hammered bank stocks and rippled through global markets.

QT BAD: In the event of a liquidity crisis in markets, the banking system is much less ready and able to battle those shocks because of the declining level of reserves.

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