Federal Reserve Chair Jerome Powell vouched for the health of the financial system on Wednesday.Ī renewed sell-off Thursday focused on PacWest Bancorp and Western Alliance Bancorp, two smaller regional banks whose shares have been under pressure since Silicon Valley Bank failed in mid-March and set off the current crisis. JPMorgan’s Dimon said Monday that he believed “this part” of the banking crisis was over. and you have less than $250,000 there, which covers most accounts.īankers and regulators have tried to reassure investors that the worst of the crisis is past, to little avail. It is difficult to ignore the sense of unease in banking right now, though there’s no need for concern if your money is in a bank insured by the Federal Deposit Insurance Corp. put tighter restrictions on major banks following the financial crisis 15 years ago. Averting that scenario was the reason the U.S. The bigger worry is that the bank failures might lead to doubts about relatively healthy banks, creating a financial contagion that could impact the wider economy. While many thought the sale of First Republic “would stop the ‘who’s next?’ conversations, investors are clearly continuing to focus on remaining players that are deemed the weakest” analysts at UBS wrote in a note to clients. history and the third failure of a midsize lender in two months. It was the second-largest bank failure in U.S. Uncertainty continues to pummel the banking industry, despite assurances from financial regulators and bankers such as Jamie Dimon this week that the worst of the recent crisis is over and the health of the banking system remains strong.īank shares have sold off on Wall Street this week following the government seizure and subsequent sale of First Republic Bank to JPMorgan.
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