US bank stocks fall after Credit Suisse crashes nearly 30%
US bank quotes came under heavy pressure amid a sharp decline in shares of Swiss financial conglomerate Credit Suisse (CS). The problems affected many large banks UNITED STATES. Wells Fargo fell down more than 3.9%, Citi down 4.6%, and JPMorgan and Goldman Sachs each lost around 4%. Shares of some regional banks reacted even more strongly. Thus, First Republic collapsed by more than 20% after S&P Global lowered its rating.
peter boukvar of Blackley Financial Group declared CNBC that while Credit Suisse’s troubles don’t seem tied to midsize banks in the U.S., the combination of these factors could cause investors to change their view of the banking system.
“The market is rebalancing. Investors should consider whether banks will have to start raising capital,” he added. For example, Wells Fargo filed on March 14 to raise $9.5 billion in capital through the sale of debt securities.
Credit Suisse Shares lost at a price of almost 30% at the opening of markets on March 15 after its main shareholder, the Saudi National Bank, announced the end of all additional financial support. At press time, CS shares on the New York Stock Exchange have recovered about half of the drop and cost $2.1. On Tuesday March 14, the Swiss conglomerate announced that it had found “material deficiencies” in its financial statements for previous years.
Former American investor and best-selling author of Rich Dad Poor Dad Robert Kiyosaki predictedthat the next to fail after the collapse of the American Silicon Valley Bank (SVB) will be Credit Suisse.