Winning Bizness Desk
Mumbai. As the days are progressing, the crisis of the American banking sector is deepening. After the sinking of Silicon Valley Bank and Signature Bank, now another bank is also facing the threat of closure. In the last 5 days, the shares of American Bank, First Republic Bank have fallen by 65.61%, resulting in a decline of 70.30 percent in one month. The rating agency Moody's has also included the name of First Republic Bank in the six American banks that have been kept under review. After the rating agency downgraded the rating of these banks, the discussions about the crash of the American banking sector have gained momentum.
Investors' confidence shaken
On Wednesday, the banking crisis deepened due to the heavy fall in the shares of Credit Suisse Bank. First Republic Bank claims to have sufficient cash. But, this claim has not affected the investors and they are selling the shares of the bank indiscriminately. The bank has joined hands with Fed and JP Morgan for additional cash. Earlier on Monday, Western Alliance had told that the bank has more than $ 25 billion cash available.
The ratings of 6 banks downgraded
Rating agency Moody's has downgraded the ratings of First Republic Bank as well as Zions Bancorporation, Western Allianz Bancorp, Comerica Inc, UMB Financial Corp and Intrust Financial Corporation to under review. Earlier on Monday, Moody's had downgraded the debt rating of Signature Bank to junk territory. Shares of Switzerland's bank Credit Suisse fell 28 per cent on the Dow Jones on Wednesday. This is the biggest fall in the bank's shares in a day. This decline in bank shares came after the news of Saudi National Bank, a major shareholder of the bank, not buying any more stake in the bank.
Credit Suisse Bank about to collapse ?
At the same time, Robert Kiyosaki, the famous investor and co-founder of Rich Dad Company, who predicted the collapse of Lehman Brothers Bank in 2008, has said that Credit Suisse Bank is about to collapse. Kiyosaki says that the US bond market is crashing. This is the biggest problem. Kiyosaki has warned that America is in 'serious trouble' due to the bond market and the bond market has now become a major problem for the economy. Kiyosaki has said that the dollar will also weaken in the coming times.