Losses in bank stocks widened after the Fed announcement and the PacWest banking crisis
Shares of major US-listed banks fell amid Fed rate hikes and the possible sale of PacWest Bank.
Shares of major US-listed banks, including Bank of America, JPMorgan Chase & Co and Citigroup, began to fall, contributing to widespread declines earlier in the week. The hardest hit was PacWest Bank (NASDAQ: PACW), which is down 50% today, as seen in the investment exploration chart below. A day earlier, news broke that the company was exploring "strategic options" such as a spin-off or sale, according to Bloomberg.
It should be remembered that the last bank to announce that it was exploring strategic options was First Republic after the massive outflow of bank deposits. And then on Monday, US regulators shut down that company and JPMorgan bought it, which hurt the markets. A tough week for bank stocks Shares of major banks fell after the sale of First Republic, a development now exacerbated by the situation at PacWest, the Fed added. The agency raised rates again this week by 0.25%.
Announcing the decision, Federal Reserve Chairman Jerome Powell said the US banking system was "robust and resilient." Therefore, he suggested that they would not be further affected by the increase in interest rates. However, shares of all major banks opened in the red today. Among them, Bank of America (BAC), Citigroup (C) and JPMorgan Chase (JPM) fell around 3% on the hour on the New York Stock Exchange (NYSE), for a loss of around 7%. in the week.
