The Biden admin IS bailing out two banks….
(Signature Bank is actually doing better as I type this)
Don’t think anything else….
It’s the right thing to do….
The bank stocks are alright as of today ….
The market people are still focused on the Fed and another rate hike….
And people are getting paid……
Joe Biden maybe pissed....
But he doesn’t have another 2008/2009 on his hands….
Regional bank stocks, some of which lost nearly half their value on Monday, rebounded in early trading on Tuesday, helping Wall Street to recover and offering a pause in the market panic over the health of the financial system.
The S&P 500 rose 1.5 percent in morning trading, recouping some of its losses from the rapid collapse of Silicon Valley Bank and Signature Bank, and pointing to a semblance of stability returning to financial markets. Investors appeared to take to heart assurances that depositors will be protected by federal authorities, helping to calm nerves in the banking sector.
First Republic Bank, one of the banks most in the crosshairs of investors in recent days, was up nearly 50 percent, having fallen by a similar amount on Monday. Western Alliance Bancorp rose roughly 40 percent, following a fall of nearly 50 percent. The KBW Bank index, which tracks the performance of 24 banks, rose over 4 percent, its best day in roughly four months….
Typically that would garner a strong response from the Federal Reserve, resulting in even higher interest rates that typically weigh on the stock market. But expectations for further rate increases have been moderated by the banking crisis, leaving the Fed in a difficult spot. The central bank has said that it will keep raising interest rates until it has inflation under control but it is those same interest rate increases that were at the root of the pain among banks over the past week.
“People are trying to gauge what the Fed is actually going to do given all the new information since the end of last week,”….
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