The US regional banks experienced a dramatic rally on Friday, May 5th, after several days of dramatic losses. PacWest saw the most significant rise and closed 81.70% in the green. Despite the positive turn today, most of the banks’ shares are still much lower than they were when they opened on Monday. Western Alliance and First Horizon Bank also experienced dramatic rises of 49.31% and 8.75% respectively. The event that sparked the bank crisis in early March was the receivership and sale of First Republic on Monday. Before this, Silevrage, Silicon Valley, and Signature were liquidated or shut down by the authorities, which failed to restore confidence after it was revealed that the lenders were borrowing from the discount window more than in 2008. Although multiple attempts to save First Republic were made, the company ultimately succumbed to the crisis. Now that the banking crisis has been reignited, these three banks are still in a vulnerable position facing serious liquidity concerns.
Noah Davis
- 2023-05-06
U.S. Regional Banks Experience Rally After Major Losses
On Friday 5th, after several days of losses, US regional banks experienced a dramatic rally. PacWest saw the most significant rise and closed 81.70% in the green. Western Alliance and First Horizon Bank also experienced dramatic rises of 49.31% and 8.75%.
