FT News Briefing US regional bank stocks still under pressure
May 3, 2023
The rescue of First Republic hasn't stopped the plunge in regional bank stocks, raising investor fears. Rising interest rates compound these worries, leading to a tough market for banks attracting deposits. Meanwhile, Apple sees a surge in refurbished iPhone sales in India, boosting its market presence. European banks eye opportunities from Credit Suisse's acquisition by UBS, while Deutsche Bank plans to enhance its investment advisory team. The fallout from Hindenburg’s short seller attack causes significant drops for the Icahn group.
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Investor Anxiety Remains After First Republic Rescue
- The rescue of First Republic Bank benefited the banking system, but not investors.
- Stock investors are now more worried, while depositors should be less worried.
Investors Target Similar Banks
- Investors are worried about banks that resemble First Republic or Silicon Valley Bank, particularly those lending to venture capital.
- These banks haven't seen similar deposit losses but are facing increasing pressure on earnings.
No New Information Triggered Sell-off
- There was no new fundamental information released yesterday about the banks that lost share value.
- This sell-off was purely driven by investor sentiment.