<p>The share prices of banks in the
United States rebounded on Tuesday, improving after plummeting earlier on
Monday. The stocks had plunged a day ago over fear of the possible contagion
effects of the collapse of Silicon Valley Bank (SVB) and two other American lenders
in the country’s banking industry.</p><p>Finance Magnates reports that
SVB’s collapse <a href="https://www.financemagnates.com/fintech/svbs-collapse-casts-shadow-on-bank-shares-as-first-republic-bank-slumps-over-60/" target="_blank" rel="follow">cast a shadow on bank stock prices</a> in the country on Monday, with the regional lender, First Republic Bank leading the pack as its shares slumped by over 60% to $28 a
share at one point during the market. Other banks and financial services companies saw
their stock prices plummet:
Western Alliance Bancorp 64% to $18, KeyCorp 37% to 11%, and PacWest
Bankcorp 30% to $7.</p><p>In addition, other bank stocks
declined significantly: Zions Bancorporation 25% to $30, Charles Schwab 11% to $52
and Bank of America 3% to $29, among others. </p><p>US Bank Stocks Shake Off SVB Fears</p><p>However, the market changed on
Tuesday, as the sell-off frenzy slowed down with investors returning to the
markets, suggesting that they are beginning to shake off the fear from the effects of SVB. At the time of filing this
report, the shares of First Republic Bank and Western Alliance Bancorp, which
saw some of the biggest declines yesterday, improved 28% to $40 a share and
14% to $30, respectively.</p><p>The shares of other banks also
shot up: PacWest Bancorp 34% to $35, KeyCorp 7% to $12, Zions
Bancorporation 4% to $31, Charles Schwab 9% to $57 and Bank of
America 0.88% to $29 a share, among others.</p><p>SVB <a href="https://www.financemagnates.com/cryptocurrency/svb-crisis-circle-escapes-usdc-depeg-with-regulatory-assurance/" target="_blank" rel="follow">collapsed last Friday</a>, precipitated by the inability to halt a
bank run and its failed attempt to salvage the situation with extra funding. On Sunday,
the bank, which targeted early-stage technologies companies, <a href="https://www.financemagnates.com/cryptocurrency/svb-crisis-circle-escapes-usdc-depeg-with-regulatory-assurance/" target="_blank" rel="follow">went into receivership</a> of the Federal Deposit Insurance
Corporation. </p><p>In their bid to forestall a
contagion, New York regulators on Sunday <a href="https://www.financemagnates.com/cryptocurrency/signature-bank-collapse-coinbase-and-paxos-disclose-massive-exposure/" target="_blank" rel="follow">shut down Signature Bank</a> in order to “protect dispositors.” Speaking to
Finance Magnates on Monday, Lars Holst, the Founder and CEO of digital broker
GCEX, <a href="https://www.financemagnates.com/forex/exclusive-gcexs-holst-breaks-down-signature-bank-exposure/" target="_blank" rel="follow">expressed surprise at Signature Bank’s
fallout</a>. Furthermore, the CEO expects the
successors of the failed banks to emerge from the United Arab Emirates.</p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
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