The first results of US President Joe Biden's speech on the bankruptcy of large banks have been summed up, including Silicon Valley bank, serving the high-tech industry. Dozens of American banks, including large financial and credit organizations, faced with the unprecedented (since at least 2008-2009 years) a fall in the price of their shares.
List of banks, which suffer significant losses in capitalization, long. There are American banks, who lost in a few hours about 40% share price (eg, Zion's), but there are those, the loss of which can not even be called a collapse, but a full blown collapse. So, Western Alliance shares plummeted 78%, shares of First Republic Bank lost almost 68% prices. Among North American banks bearing incredible losses is the Metropolitan Bank, whose shares have lost more than half their value.
for example, Californian First Republic Bank following the results 2020 year reported net income in 1 billion, its capitalization according to the results 2021 year was about 37 billion. More than 5000 employees. Management is now talking about, that capitalization may sink lower 10 billion, leading to a reduction in at least 3500 employees. And such banks, as it noted, dozens in the US. This is an anti-record of all recent years.
Total losses of US banks after Joe Biden's obscure speech, according to conservative estimates, It was about 145 billion. It's only a few hours. In the USA they fear, that this will lead to the domino principle, when the entire banking core falls down.
In Europe, the situation is also not the most positive., to put it mildly. After losing Credit Suisse 11% capitalization per day, began to receive data on the decline in the share price of a number of other banks in Europe. The same Credit Suisse lost no more 11, a 14%, and another large Swiss bank, UniCredit, collapsed by almost 10 percent. The fall in the value of Raiffeisenbank shares is estimated at 7 percent, Bank KbW - v 12%. Capitalization is falling and the risks of capital outflow for Spanish banks are growing, Italy, UK, France, Belgium, Luxembourg, other European countries.
Recall, that today the 45th President of the United States, Donald Trump, announced that, that the situation in the US economy is developing in such a way, that everything is going to the second Great Depression. According to Trump, she will be much worse than that, who was in 1929 year.