SVB collapse: Three banks that could show if market has shaken off 'contagion'

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Regional bank stocks reported some recovery today after sharp declines were incurred over the weekend due to the collapse of Silicon Valley Bank. Three key regional bank stocks all saw increases during early market trading.

Key regional bank stocks, including First Republic, KeyCorp, and Fifth Third Bancorp, all saw increases during early market trading despite recording their worst drops in more than three years on Monday. First Republic was up 20% as of Tuesday morning, while KeyCorp reported a 12% increase.

Other large banks such as Wells Fargo, Bank of America, and Morgan Stanley also reported growth on Tuesday morning, and stock futures were on the rise as of 7:20 a.m. EST.The latest development comes after the collapse of SVB and Signature Bank late last week, which prompted major federal intervention to backstop uninsured deposits in a bid to halt panic.

SVB announced on Wednesday it had sold $21 billion in bonds, cementing $1.8 billion in previously unrealized losses. That announcement sparked a frenzy among venture capital firms, which reportedly began advising clients to pull their money from Silicon Valley Bank — causing its stock to be thrust into a free fall.

 

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