The banking crisis deepened on Monday morning as several banks plunged in pre-market trading, causing customers to begin lining up to withdraw their funds.
The news comes after the implosion of Silicon Valley Bank (SVB) on Friday, marking the second-largest U.S. bank collapse in history.
On Sunday evening, regulators also shut down New York’s Signature Bank, striking more fears into the banking world.
The knock-on effects now appear to be hitting other banks hard.
Before Monday’s open, First Republic Bank was down a whopping 66% this morning.
JUST IN – First Republic Bank plunges 66.6% in pre-market. pic.twitter.com/AVnVDCAQrN
— Disclose.tv (@disclosetv) March 13, 2023
The Western Alliance Bancorporation is also down 62%.
JUST IN 🚨 Bank stocks in pre-market trade:
Western Alliance Bancorporation down 62%
First Republic Bank down 64%
PacWest Bancorp down 42%
Charles Schwab down 8.52% pic.twitter.com/0uNPxAq72f
— Insider Paper (@TheInsiderPaper) March 13, 2023
On Sunday First Republic Bank announced a strengthening and diversification of their liquidity position.
Then the bank plunged 66% overnight.
Today, we announced a further strengthening and diversification of our liquidity position. This increase in available liquidity further reinforces the safety and stability of First Republic. We are grateful to our clients for their continued support. https://t.co/eucaVOEjoy
— First Republic (@firstrepublic) March 13, 2023
Bank customers started lining up in California on Sunday.
People lining up to pull money out of First Republic Bank in Brentwood, LA this weekend.
Wealthy neighbourhood with many uninsured accounts over $250,000.
The banks stock is down 33% in the last week.
Is this what the start of a bank run looks like? pic.twitter.com/yU1xR8JKUw
— Genevieve Roch-Decter, CFA (@GRDecter) March 12, 2023
In a speech on Monday, Democrat President Joe Biden told the American people that investors will “lose their money” because “that’s how capitalism works.”