US regional bank shares sink despite Fed calling banking system ‘sound’
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Share prices of several United States regional banks tanked in after-hours trading Wednesday, despite Federal Reserve Chairman Jerome Powell calling the banking sector “sound” and “resilient” just hours before.
One such regional bank, PacWest Bancorp, fell a whopping 52.5% in after-hours trading after Bloomberg
Will Clemente, the founder of digital asset analysis firm Reflexivity Research, mocked Powell to his 680,300 Twitter followers by stating the collapse of now five banks — SVB, Silvergate, Signature, First Republic and PacWest — “sounds like a very sound and resilient banking system…”
FED Chair Jerome Powell says “banking system is sound, resilient.”
*two hours later* : PacWest, Western Alliance, and Metropolitan bank down a combined +100%$PACW $WAL $MCB pic.twitter.com/YBPk0LtYVh
— Mohegan ?TC (@MoheganBTC) May 3, 2023
Twitter user, “zerohedge” made fun of Powell by noting to its 1.6 million followers that over $500 billion has been wiped out from “bank failures” in the past month alone.
PacWest Bancorp’s 52% fall is set to wipe out about $340 million from its market cap, which was $772 million at Wednesday’s close, according to Google Finance.
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