Vigilance for the opening of trading on Wall Street (Photo: ShutterStock)
The financial snowball continues to roll: after it was announced this morning that HSBC Bank would acquire Silicon Valley Bank, which was closed by the regulator last weekend, and after CryptoSignature Bank's operations were transferred to a bridge bank, to avoid panic among customers, it seemed that the phenomenon of "the run to the bank".
However, a signal from the "pre-trading" phase on Wall Street, even before trading in New York has officially opened, shows that we may not be at the end of the process yet: the FIRST REPUBLIC BANK share has lost about 60% of its value - and now the eyes are on the administration again, waiting to see whether will intervene in the bank's activities as witnessed in the two previous cases.
Although so far the two collapses have not caused any real damage (apart from the bank's owners), it seems that the phenomenon is deeper than the regulator expected - and more moves may be required to stop the drift.
It seems that the moves initiated by the banks themselves - yesterday the bank's management announced that it has more than 70 billion dollars in cash to finance all its obligations, which are intended to relax the regulation, are the ones that are compounding the panic among the customers.
Signature Bank in New York - is another bank on the way to collapse? (Photo: Reuters)