ECONOMY
Wed 15 Mar 2023 5:53 am - Jerusalem Time
The shares of the American First Republic Bank fell by more than 65%
The share price of the American First Republic Bank fell Monday, by more than 65%, with the start of trading on Wall Street, which led to a decline in shares of other banks at a time when US regional banks face pressure.
Other regional banks fell, including Western Alliance Bancorp and Zionis Bank Corporation.
After about 20 minutes of trading, the Dow Jones Industrial Average rose slightly after falling by 0.7% at the beginning of the session.
However, the Standard & Poor's 500 index remained down by 0.4%, while the Nasdaq index lost 0.3%.
This came despite the US financial authorities' announcement on Sunday of a bailout plan to guarantee the deposits of Silicon Valley Bank customers.
The Federal Reserve also announced that it will provide additional funding to banks to help them meet the needs of depositors.
"Confidence is eroding in the market. We see that clearly with regard to regional banks especially," said Quincy Crosby of LBL Financial, adding that the same phenomenon exists in Europe.
The expert added that the US authorities are trying to boost confidence, but "it does not seem to be working."
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The shares of the American First Republic Bank fell by more than 65%