As this Bloomberg piece puts it: “One bank folds, another wobbles and Wall Street asks if it’s a crisis” before going on to question: “Could this be the start of a much bigger problem?”
“Rising interest rates have left banks laden with low interest bonds that can’t be sold in a hurry without losses. So if too many customers tap their deposits at once, it risks a vicious cycle.”
It’s hit EU banks (their shares are set for their biggest drop since June) and also banks in the UK: HSBC, Barclays, NatWest, Standard Chartered and Lloyds have all seen losses today leaving the FTSE 100 set for its worst day since July 2022.
Bankwatch 