From the 2008 economic crisis to the fall of the Silicon Valley Bank and a crash that Credit Suisse keeps pushing off, depositors of major lenders remain a casualty for financial fiascos. Despite market research, ratings firms and audits, such dramatic declines almost always catch stakeholders off guard.
After checks and balances put in place after the 2008 Lehman Brothers crash failed to save SVB, American lenders have pledged $30 billion to avert a repeat of the episode.
Big banks line up to save First Republic
But this move by American banking's bigwigs, has failed to reassure investors since First Republic's stocks cracked by 20 per cent, after a 10 per cent recovery in the previous session.
As Bank of America, Wells Fargo and JP Morgan Chase each came forward with $5 billion for First Republic Bank, Goldman Sachs and Morgan Stanley deposited $2.5 billion.
Investors not convinced
But investors couldn't relate to the confidence expressed by big lenders in their peer after SVB and Signature Bank crashed.
Apart from US's big banks, the Federal Reserve also released $12 billion under a one-year lending program for banks, to reassure depositors.
Dragged down by First Republic's free fall, Dow has also lost more than 300 points.
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