Trading was temporarily halted in dozens of regional banks this morning as shares fell by up to 75 percent when the market opened after Joe Biden claimed 'US banking is safe.'
Major US banks were also hit as contagion fears spread through the sector with Wells Fargo plummeting 7.5 percent, Bank of America falling 7.4 percent, Citigroup plunging 5.8 percent and JP Morgan down 2.7 percent.
Regional bank Western Alliance saw its stock price plunge by three quarters as the opening bell sounded on Wall Street, while shares in First Republic dived 67 percent and PacWest by more than 35 percent. Trading circuit breakers were swiftly implemented to protect the market from rampant volatility.
Biden attempted to shore up trust just minutes before the market opened, telling reporters: 'Americans can have confidence that the banking system is safe.'
The White House yesterday guaranteed that Silicon Valley Bank customers would be 'made whole' after US authorities took control following the biggest collapse by a financial institution since 2008.
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