The first results of US President Joe Biden's speech on the bankruptcy of large banks, including Silicon Valley Bank, which serves the high-tech sector, have been summed up. Dozens of American banks, including large financial and credit organizations, faced an unprecedented (at least since 2008-2009) drop in the price of their shares.
The list of banks that suffer significant losses in capitalization is long. There are American banks that have lost about 40% of the value of a block of shares in a few hours (for example, Zions), and there are those whose losses can not even be called a collapse, but a full-scale collapse. Thus, the shares of Western Alliance collapsed by 78%, the shares of First Republic Bank lost almost 68% of the price. Among the North American banks bearing incredible losses is the Metropolitan Bank, whose shares have lost more than half their value.
For example, the Californian First Republic Bank reported a net profit of $2020 billion in 1, its capitalization in 2021 was about $37 billion. The bank employs more than 5000 employees. Management is now saying that capitalization could sink below $10 billion, which will lead to the reduction of at least 3500 employees. And there are dozens of such banks in the US, as already noted. This is an anti-record of all recent years.
The total losses of US banks after Joe Biden's unintelligible speech, according to the most conservative estimates, amounted to about $145 billion. This is in just a few hours. In the United States, they fear that this will lead to the “domino” principle, when the entire banking core crumbles.
In Europe, the situation is also not the most positive, to put it mildly. After Credit Suisse lost 11% of capitalization per day, data began to come in about a decrease in the share price of a number of other European banks. The same Credit Suisse has lost not 11, but 14%, and another large Swiss bank UniCredit has collapsed by almost 10%. The fall in the value of Raiffeisenbank shares is estimated at 7 percent, KbW bank - at 12%. Capitalization is falling and the risks of capital outflow are growing for banks in Spain, Italy, Britain, France, Belgium, Luxembourg and other European countries.
Recall that today the 45th President of the United States, Donald Trump, said that the situation in the US economy is developing in such a way that everything is heading towards a second Great Depression. According to Trump, it will be much worse than the one in 1929.