Bank stocks dive as Wall Street trembles amid SVB failure
(Worthy News) – Bank stocks fell Monday on worries about what may be next to topple following the second- and third-largest bank failures in U.S. history. But much of the rest of the market rose on hopes the bloodletting will force the Federal Reserve to take it easier on its economy-rattling hikes to interest rates.
The S&P 500 dipped 6 points, or 0.2%, after whipsaw trading, where it careened from an early loss of 1.4% to a midday gain of nearly that much. The Dow Jones Industrial Average fell 90 points, or 0.3%, while the Nasdaq composite rose 0.4%.
The sharpest drops were again coming from banks and other financial companies. Investors are worried that a relentless rise in interest rates meant to get inflation under control are approaching a tipping point and may be cracking the banking system. [ Source: CBS News (Read More…) ]
FDIC has only about half the cash needed to cover roughly $264B in deposits at failed banks, report
The Federal Deposit Insurance Corporation has $128 billion of cash on hand while deposits at failed banks are $264 billion, according to the latest data available.
Signature Bank has $88.6 billion of deposits and Silicon Valley Bank has $175.4 billion of deposits. According to the FDIC’s most recent quarterly report, the agency has a balance of $128 billion.
Signature failed Sunday and Silicon Valley failed Friday. [ Source: Just the News (Read More…) ]