Busted banks wipe out $54bn of stocks, bonds during turmoil

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The collapses that claimed four US lenders this year have stuck investors with more than $54 billion of losses, after FirstRepublicBank’s demise added to the pile of nearly worthless securities and sent some peers into a new tailspin. Moneyweb Stocks

The collapses that claimed four US lenders this year have stuck investors with more than $54 billion of losses, after First Republic Bank’s demise added to the pile of nearly worthless securities and sent some peers into a new tailspin. The tally includes $46.9 billion of market capitalisation erased since February 28, just before the bank turmoil began in earnest, and about $7.5 billion gone from bonds and preferred shares, according to calculations by Bloomberg.

, a buyer of regional bank securities, has sold preferred shares in recent weeks, limiting exposure to the sector while the firm evaluates how to proceed. Speculation about the rest of the sector has rippled through other banks. PacWest Bancorp plunged 28% to close at a record low on Tuesday, while Western Alliance Bancorp tumbled 15%, even though both have posted some relatively upbeat quarterly results.

 

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