BusinessWhat is the next bank that could be at risk of declaring...

    What is the next bank that could be at risk of declaring bankruptcy?

    The storm caused by the bankruptcy of Silicon Valley Bank (SVB) caused the value of the shares of other financial institutions to plummet bigger and also revealed that several of the regional banks segregated in the United States They could require more support from the Federal Reserve to avoid problems in the coming weeks.

    As a result, it is highly probable that the turbulence in the financial sector will continue and some analysts are beginning to see the need for a larger bailout plan for several banks considered smallbut that for several months they have been operating on a fine line of risk that at any moment could cause their clients to start canceling their accounts to take them to another larger institution, which sooner or later would leave them lacking solvency to continue operating.

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    And it is that fear has begun to haunt the minds of some savers and investors that, without prior notice, your bank of choice could temporarily leave you without the possibility of withdrawing your money, this despite the millionaire loans that the Federal Reserve has granted to financial institutions interested in propping up their finances.

    In contrast, this week it was reported that Bank of America, Wells Fargo and Citigroup showed a significant increase in deposits from which they withdrew their investments from Silicon Valley Bank.

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    Now the questioning revolves around the next regional bank that could be in trouble.

    This week, Western Alliance shares fell 16%, PacWest Bank (PACW) 12%, and other regional banks also posted significant losses.

    However, one of the hardest hit was First Republic Well, its shares depreciated up to 35% and this also reduced its credit rating, something quite serious for the institution founded in 1985.

    In a similar situation is the financial services firm Credit Suissebecause with everything and that it accepted about $54,000 million dollars via loans from the Swiss central bank, it simply cannot silence the voices that recommend it be sold to UBS Group AG.

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    Source: La Opinion

    This post is posted by Awutar staff members. Awutar is a global multimedia website. Our Email: [email protected]


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