Big banks inject funds in US lender, but analysts worry the potential for a banking crisis is far from over
Traders work at the post where First Republic Bank stock is traded on the floor of the New York Stock Exchange in New York City, US, in this March 16 2023 file photo. Picture: BRENDAN MCDERMID/REUTERS
The package came less than a day after Swiss bank Credit Suisse clinched an emergency central bank loan of up to $54bn to shore up its liquidity. “They will keep the money in First Republic to keep it alive for self interest ... to stop the run on banks. Then they will take it away gradually and the bank will play out a slow death,” said Mathan Somasundaram, founder at research firm Deep Data Analytics in Sydney.
Data on Thursday showed banks in the US sought record amounts of emergency liquidity from the Fed in recent days, driving up the size of the central bank’s balance sheet after months of contraction.“I don’t think we are in the crux of a global financial crisis. Balance sheets are much better than they were in 2008, banks are better regulated,” said Karen Jorritsma, head of Australian equities, RBC Capital Markets.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
US stocks close higher as banks to inject $30bn into First RepublicEleven large US banks step in to shore up First Republic Bank’s coffers to stabilise the lender
Read more »
Standard Bank CEO endorses central bank digital currenciesStandardBank chief executive Sim Tshabalala has expressed qualified support for central bank digital currencies (CBDCs), but also said that there were “strong warrants to be sceptical” about the value of privately-generated crypto assets.
Read more »
Banks feel impact as Asian markets are hit by contagion fearsAsian markets slid, led again by banks, with contagion talk sweeping across trading floors owing to fears about European giant Credit Suisse.
Read more »
Gold and bitcoin surge | The CitizenBitcoin broke above R470 000 in SA and flirted with $26 000 on Tuesday, as investors digested a week of frightful news from the banking sector. 📈 Read more here 👇
Read more »
Congo-Kinshasa: Democratic Republic of the Congo - the Humanitarian Crisis in North Kivu Is EscalatingThe armed conflict in North Kivu province between the March 23 Movement (M23) and the Congolese army (FARDC) has intensified, with devastating consequences for civilians. The fighting, which had previously been confined to Rutshuru territory, has spread to Masisi territory, causing hundreds of thousands of people to flee for the provincial capital of Goma.
Read more »
Focus on Africa - Central African Republic's former top lawyer awarded for her 'courage' - BBC Sounds'The bravest thing I've ever done, was to say: 'No'.' Professor Danièle Darlan, former president of the Central African Republic’s Constitutional Court, reveals how she risked her own safety by refusing to change her nation's constitution. IWD2023
Read more »