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.
The U.S. banking system is on the verge of a much bigger collapse than 2008. Banks own long-term paper at extremely low interest rates. They can't compete with short-term Treasuries. Mass withdrawals from depositors seeking higher yields will result in a wave of bank failures.
— Peter Schiff (@PeterSchiff) March 10, 2023