‘the big short investor Michael Berrywho made millions of dollars to its investors by accurately predicting the real estate crisis, has offered his opinion on the ongoing situation in the US banking industry.
“This crisis could resolve itself very quickly. I don’t see any real danger here,” he said in his now-deleted tweet.
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Price promotion: Burry’s testimony comes at a time when banking and financial stocks are taking a hard hit, despite assurances president Joe Biden to do yourself everything needed to counter the threat to the banking system. JPMorgan Chase & Co JPM Stocks closed 1.8% lower, Bank of America Corp BAK lost 5.81% MorganStanley MS Shares closed 2.29% lower. Western Alliance Ban Corporation WHALE Shares lost 47.06% PacWest Bancorp PACW lost 21.05%.
The magnitude of the concerns is accurately reflected in the stock price action Bank of the First Republic FRC. Shares of the lender closed 61.83% lower on Monday, despite the bank releasing a statement the day before the claim it has strengthened its liquidity position.
FRC had said it had improved and diversified its financial position with additional borrowing capacity from federal reservecontinued access to funding through the Bundesbank for housing loansand the ability to access additional funding through JPMorgan Chase & Co. First Republic’s total available untapped cash to fund its operations currently stands at over $70 billion, it added.
The crisis began with the settlement of the Silicon Valley Bank last week after those signature bank was shut down by New York regulators. But the pain seems far from over, as reflected in news from other circles. Charles Schwab Corporation BLACK on Monday a 28% fall in average margin balances and a 4% fall in total client assets for February, adding pressure on the company amid fears over the fallout from the Silicon Valley bank collapse, Reuters reported. The company’s shares closed 11.57% lower on the…
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