Multiple Bank Stocks Stop Trading Amid Post SVB Volatility
While the Fed may have bailed out Silicon Valley Bank (SVB)’s depositors on Monday, the market’s uncertainty surrounding the entire banking sector still loom large.
Trading for multiple banking organizations was halted on Monday due to share price volatility, much like SVB last Friday.
- According to Nasdaq Trader, trading for Charles Schwab – a multinational financial services company with $7.8 trillion in assets under management – was halted on the NYSE at 9:49 am EDT on Monday. The company’s stock is down 18% on the day.
- Meanwhile, First Republic Bank has dropped by a record 76% since Monday’s opening, before it too was halted at 10:43 am EDT. The bank’s stock was already placed under massive pressure alongside SVB and Signature Bank late last week.
- Other halted stocks include Western Alliance (-76%), PacWest (-47%), Zions (-24%), and Comerica (-33%). The collective hammering of the banking sector is visible in the Nasdaq KBW Index of Commercial Banks, which is presently down by 11%.
- SVB was down by about 66% last Friday before being closed by regulators and claimed by the FDIC.
- Signature Bank was also placed into receivership on Sunday, with the Federal Reserve agreeing to bail out both Signature’s and SVB’s depositors in order to protect the banking system.
- Major crypto firms including Coinbase, Paxos, Ripple, and Circle had exposure to SVB, with the latter holding $3.3 billion of its stablecoin reserves within the firm. Circle has since reclaimed its funds, and decided to transfer those reserves to BNY Melon.
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