Bank shares rebound off lows as big banks come to the aid of First Republic
Publishing timestamp: 2023-03-16 17:43:42
Summary
Shares of First Republic rose nearly 10% after news that 11 major U.S. banks had struck a rescue deal for the firm. The SPDR S&P Regional Bank ETF (KRE) also rose, along with Western Alliance and Zions Bancorp. The collapse of Silicon Valley Bank has left investors scrambling to identify other regional banks with similar balance sheet issues. The rescue plan announced on Wednesday called for $30 billion in deposits from major banks, including JPMorgan Chase and Bank of America, as a show of confidence in the regional banking system. However, potential for increased regulation and smaller deposit bases for midsized banks could also be hurting stocks as investors assess future earnings power of regionals.
Sentiment: MIXED
Tickers: CS, KRE, WAL, CSG.N-CH, ZION, PACW, FRC, SBNY,
Keywords: banks, spdr s&p regional banking etf, business news, investment strategy, markets, breaking news: markets, pacwest bancorp, credit suisse group ag, financials, western alliance bancorp, signature bank, united states, zions bancorporation na, first republic bank,