'Very quickly the conversation turned to First Republic,' said a source close to the 48-hour deal to infuse First Republic with $30 billion. On Tuesday afternoon, JPMorgan Chase CEO Jamie Dimon was in Washington for a previously scheduled banking industry meeting and reached out to Treasury Secretary Janet Yellen and Federal Reserve Board Chair Jerome Powell. That's up from earlier in the week but still indicates extreme fear in the market.Ī First Republic Bank branch is pictured in Midtown Manhattan in New York City on March 13. Investors also digested new consumer sentiment data from the University of Michigan on Friday that showed that Americans' optimism about the economy declined in March for the first time in four months. Gold futures rose 2.1% as investors sought ways to shelter from the banking turmoil. West Texas Intermediate, the US benchmark for oil, was down about 2%. Shares of First Republic continued to get pummeled, falling over 25% despite a decision by a group of big banks to lend it a $30 billion lifeline. The Federal Reserve lent banks a record $153 billion last week, showing the immense pressure weighing down the banking sector on the heels of several failures. The S&P 500 and Nasdaq slipped 1.1% and roughly 1%, respectively. Stocks deepened their losses Monday afternoon as investors continued to worry about the tumult in the banking sector. Shares have fallen 27% since SVB's bank run a week ago. Schwab's stock was down 3% Friday afternoon, though that was well off the low of the day. It had said customers had pulled 4% of their assets out of the bank and the amount of money clients owed the bank had fallen 28%. On Monday, however, Charles Schwab told a very different story. 'We are confident in our approach and in our ability to help clients through all kinds of economic environments.' 'Charles Schwab remains a safe port in a storm, driven by its conservative balance sheet, strong liquidity position, and diversified base of over 34 million account holders who invest with Charles Schwab every day,' the company said in its statement. That demonstrates 'the trust clients place in Schwab,' the brokerage said. The company said Friday it has received 'strong inflows from clients' over the past week, bringing $16.5 billion in new business. (Andrew Kelly/Reuters/File)Ĭharles Schwab is trying to reassure investors its customers are sticking with the financial broker, even as fear escalates about the banking sector. 'This has certainly been a challenging few days for our industry and we appreciate our deep relationships with customers across the bank who continue to choose Western Alliance as their trusted banking resource.”Ī person walks by a Charles Schwab location in New York, on November 15, 2021. “We have a long history of financial stability and responsible, cautious risk management,' said Kenneth Vecchione, CEO of Western Alliance Bank, in a statement. In an extraordinary action Sunday, the FDIC guaranteed all Silicon Valley Bank customers' deposits. That compares to just 7% at SVB, where many tech companies stored millions of dollars of cash - well in excess of the FDIC's $250,000-per-account insurance limit. The bank said as of yesterday, 55% of its deposits were insured. Still, Western Alliance's stock fell 15% Friday. Other regional banks, including First Republic and PacWest, have also struggled mightily to reassure customers and investors that they're healthy.

That's a sharp contrast from Monday, when customers had been yanking deposits out of the bank in fear that Western Alliance may be the next bank to fail. The bank said it has a 'significant' amount of money coming in from deposits, and a large number of new accounts were opened. Western Alliance has $20 billion of cash on hand and the amount of withdrawals from accounts has plunged in recent days. Regional bank Western Alliance said business is pretty much back to normal after concerns about Silicon Valley Bank's collapse sent shockwaves through the banking sector.

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