PacWest and the Western Alliance are leading losses for this sector in the US
There is growing concern about the exposure of these media to the real crisis in the commercial sector
European stock markets were dragged to close on negative doubts about the financial sector in the US
It does not seem that the first Republic Bank has created doubts about the financial health of US regional banks. What operations are described in the market rather than who can fall next? Two specific names stand out among the Snow Sales ranks; PacWest y Western Alliance. Both companies lost more than 25% in the stock market this Tuesday and had to be suspended to complete the volatility auctions.
This Monday, JP Morgan saved its last patient, Prime Bank. In the last few weeks, the flight situation has suffered greatly. His solvency was in danger. MP
But when all the material losses; The bank members lost all their money. Now the fear of the same thing happening with PacWest and Western Alliance has led many investors to dump their bank shares.
It must be held that the First Republic is a new chapter in the financial crisis that the United States is experiencing and is gathering in its regional entities. A few months ago, two banks were closed: Silicon Valley Bank and Singular Bank.
For the same reasons that brought these beings, they could end up dragging them beyond. That is the fear that the first email of the Republic Hospital will fail. In addition, there is increasing concern about the exposure of these midsize banks to corruption in the real commercial sector.
After the pandemic and the introduction of teleworking in many companies, commercial premises and services have lost a lot of value. It is the regional entities themselves that have the most credit that is committed to this type of investment. It is to be feared that if the supporters and funds stop paying the loans, there will be some sort of trickle-down effect that will also drag down the banks.
Not even large financial institutions can escape this panorama of pessimism. Big names in the field also overcame losses in the stock market this Tuesday on the New York Stock Exchange. The red numbers that others have drawn in European squares. The Spanish closed down 1.7% and the Ibex closed 35 below 9,100 points with the banks sliding.