The market rebound being enjoyed by Credit Suisse Group AG (NYSE:CS) and London’s banking set has not seemed to rub off on US regional banks, which have been hit hardest in the fallout following Silicon Valley Bank.
California’s First Republic Bank is the worst off, with shares down a further 26% in pre-market trades, bringing week-on-week losses to a massive -80%.
The lender’s rating was cut to junk by Standard & Poors and Fitch Ratings on Wednesday, and is said to be exploring strategic options including a sale, according to people with knowledge of the matter.
Arizona-based Western Alliance Bancorporation is due to open 10% lower when Nasdaq commences Thursday trades, bringing week-on-week losses to a less severe -52%.
The iShares U.S. Regional Banks ETF is down around 12% across the week.
Large-cap US institutions are faring better, with JPMorgan Chase & Co (NYSE:JPM) down around 6% week on week and set to open half a percent higher, while Bank of America will shore up some of its 11% week-on-week losses by adding 1% when the markets open.
Regional banks are suffering significant outflows following SVB’s collapse, as customers take flight to supposed “too big to fail” US banks.
Bank in the UK, Lloyds Bank, Barclays and HSBC are up in the low single digits, aiding the FTSE 100’s 1.1% daily gains.
As of 12.30pm, Credit Suisse has rebounded 14% following yesterday’s trading suspension.