Over $100 billion dollars in bank stocks was wiped out Monday.
This follows the collapse of Silicon Valley Bank.
More than $100 billion was wiped off US banks’ value today in a bloodbath on Wall Street sparked by the collapse of Silicon Valley Bank.
Trading was intermittently halted on at least 20 regional banks as the velocity of money forced regulators to intervene. The Big Four of US banks were also drawn into the bloodletting. Citigroup’s share price dived 7.45 percent, Wells Fargo sank 7.1 percent, Bank of America plunged 5.8 percent and JP Morgan fell 1.8 percent.
Among the worst affected regional banks were First Republic which fell by 62 percent, Western Alliance which closed with a loss of 47 percent and KeyCorp which dropped by 21 percent.
The declines struck the Street despite Joe Biden making an intervention minutes before the market opened to claim that ‘Americans can have confidence that the banking system is safe’.
Former Trump White House adviser and chief economist at FreedomWorks Steve Moore said that this might just be the tip of the iceberg.
Former Trump White House adviser and chief economist at FreedomWorks Steve Moore said Silicon Valley Bank’s collapse might be the “tip of the iceberg” for the financial system. Moore told Harris Faulkner on Monday that the Biden administration’s spending caused the Federal Reserve to raise interest rates, leading to financial problems for many major banks.
STEVE MOORE: I agree with the president that we don’t have an overall banking crisis. The system is sound, but I do think you have a lot of major banks that are in some trouble. And SVB, the Silicon Valley Bank, may just be the tip of the iceberg here. And I think it’s important for people to understand how this potential banking crisis happened. It’s not because there aren’t enough bank regulators, as Biden is trying to say. It’s because of the massive inflation and the trillions and trillions of dollars of borrowing that the federal government has done that has put our financial system in great jeopardy and great peril.
You can’t just keep doing this month after month, year after year, borrowing trillions and trillions of dollars. And so what happened, because of the Biden spending and debt policies, is that not only did inflation go up, but interest rates have gone up. Harris, as you know, the Fed has had to raise interest rates eight or nine times, and they’re talking about more interest rate increases to come. And that’s caused a lot of financial problems for these big banks is the interest rates go up.
This is Biden’s economy.