US banks that suffered falls after the SVB debacle begin to recover

The actions from some of the US banks, which have been hit hard by the closures of Silicon Valley Bank (SVB) and Signature Bank over the weekend, they have shot this Tuesday morning in electronic operations prior to the opening of the Wall Street Stock Exchange. The US banking sector is living days of great tension despite the fact that the Government has tried to calm the spirits of investors.

First Republic Bank It is the main example of this situation of uncertainty that has been experienced in the banking sector in the United States. This morning has rebounded almost 47%, after Monday it had lost 50%. The San Francisco bank tried to calm investor sentiment on Sunday by saying it had further improved and diversified its financial position through access to additional liquidity from the Federal Reserve Bank and JPMorgan Chase. He clarified that “the total liquidity available and not used to finance operations is more than 70,000 million dollars.”

They have experienced a similar situation other banking entities that this morning they have started revalue: the Western Alliance bank fell 49% yesterday and today it has risen 36%; PacWest has rebounded 42%, after plunging nearly 50% yesterday; Comerica is up 21%, after losing 26%; Zions has recovered 11% compared to the 18% drop on Monday; and Charles Schwab has rallied 12% after dropping 8% yesterday.

As to the large banking institutions have also taken the upward path this Tuesday. Shares of JPMorgan Chase have risen 2.25% before Wall Street opened, while Bank of America has rebounded 5%, Citigroup 4.16%, Wells Fargo 4.17% and US Bancorp a 6.7%.

The US banking sector is living days of vertigo since last Friday the authorities intervened in the Californian bank Silicon Valley Bank (SVB). The Government and the main financial institutions have repeatedly called for calm and have ensured that the closure of SVB was due to their idiosyncrasies and not to weaknesses in the system.

However, his intervention infected other regional banks with similar characteristics, the big banks and even spread to other international markets, causing sharp falls in the main European banks.

In fact, the risk rating agency Moody’s changed its rating yesterday of the stable US banking system to negative “to reflect the rapidly deteriorating operating environment following the runaway deposits at Silicon Valley Bank, Silvergate Bank (5.88%) and Signature Bank and the bankruptcies of SVB and Signature.”

Moody’s published a list of the most vulnerable US banks, citing the above, as well as Western Alliance, Comerica, Zions, UMB Financial Corporation and INTRUST.