Banks, First Republic still loses 30%. Biden does not intervene
New worldwide alert for banksthe US credit institution First Republic keep going down. The bank’s shares drop another 30% but the US government would not be oriented towards intervene with a rescue leaving the solution to the market. This news, released yesterday morning by the NBC television financial channel, was enough – reads on Repubblica – to make precipitate actions of the bank of San Francisco by another 30%. Added to 50% from the day beforeit’s a meltdown which drove down the value of First Republic under one billion dollars for the first time in its history. This is because the suspicion now becomes that someone wants to make an example of her, treating her as Lehman Brothers in 2008, with all the disastrous consequences of infection that he then had that choice.
On Monday – continues Repubblica – the executives revealed that i clientsfrom January to March, have withdrawn 102 billion from their accounts. Even if the bleeding in April was plugged, the problem is that now it is not clear how the San Francisco bank can rake in the cash to survive. His specialty was large loans to wealthy clients. In total 173 billion at the end of Marchof which 100 to families for home mortgages, often at low rates that are no longer there sustainable. Therefore it is also difficult to find buyers for the assets that First Republic could get rid of to recover liquidity. Now it is feared the ripple effect level world.
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