JUST IN: After the collapse of Silicon Valley Bank, despite U.S. assurances deposits were safe, banking shares slumped at market opening.
Traders work on the floor during morning trading at the New York Stock Exchange in New York City on March 10, 2023. Bank shares slumped on Monday despite U.S. regulator action to protect deposits at Silicon Valley Bank and Signature Bank.Traders work on the floor during morning trading at the New York Stock Exchange in New York City on March 10, 2023. Bank shares slumped on Monday despite U.S. regulator action to protect deposits at Silicon Valley Bank and Signature Bank.
The declines come despite an emergency measure by regulators to protect depositors at Silicon Valley Bank as well as Signature Bank on Sunday, as well as comments by President Biden on Monday to reassure Americans about the safety of bank deposits. Investors are nonetheless concerned that other banks, especially smaller and regional lenders, would be unable to meet any surge in redemption requests even after the Federal Reserve said on Sunday it would make funding available for banks that require them.
Regulators also said they would protect all deposits at Silicon Valley Bank as well as Signature Bank, which was shut down by New York regulators First Republic, a bank with a high number of clients that are wealthy depositors and businesses, was among the biggest decliners among bank shares, extending steep declines from last week.The falls in bank share dragged down broader indexes, with the Dow Jones Industrial Average down 0.6% as of early morning.
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