Banking Crisis Back With More Runs

Stock markets have been moving in negative territory all week as fears for another banking crisis and possible stock market crash grow.

Shares in US bank First Republic fell as it revealed that $100bn (£80bn) of deposit withdrawals during the recent bank run following the collapse of Silicon Valley Bank and the Credit Suisse buy out.  First Republic is now rumoured to be considering an asset sale of its mortgage and securities book to raise capital and bolster its reserves.

This has sent shock waves around the globe with major US banking sectors in the US, UK and Europe all suffering.  The Far East and Emerging Market economies have not seen the same impact with Canada, China and South American markets not suffering falls anywhere near that of the ‘West’.

Comment

Here we go again.  You need to make your own decision as to whether you will ride this out, look for bargain investments in the banking sector or indeed move to safe haven investment of cash, precious metals etc.  We cannot call it.

The only bonus we can see is that government and central banks already have the experience of the Credit Crunch Crisis in 2008 as well as the more recent banking collapses to be taking swifter action to support the banking sector.  “Hold onto your hats, it just got windy”.