First Republic Bank’s $30 billion injection from America’s biggest banks to help shore up confidence in the California-based lender and the overall U.S. banking system isn’t yet a mission accomplished.
U.S. stocks continued to slide on Friday, with shares of financials under sharp pressure overall, but with shares of First Republic FRC down almost 30%, or 80% on the year so far, according to FactSet. Fear of unknown risks Wild swings in bank stocks this week and in Treasury yields, jitters about whether the Federal Reserve will keep raising its policy interest rate has left investors navigating one of the worst weeks of volatility since the 2008 global financial crisis.
He expects liquidity in the system to be reduced, consolidation in the banking system and for banks to clean up “their balance sheets of bad assets while raising additional capital.” Another $11.9 billion was borrowed through a new Bank Term Funding Program rolled out about a week ago by the central bank.
In 10 years the current dollar will only have $0.20 worth of today's buying power. Inflation is going to be horrendous as the Fed is already doing quantitative easing. They've been tightening for 8 months, but have undone it ALL in a week.
Letting banks fail and interest rates rise.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CNN - 🏆 4. / 95 Read more »