Full List of Bank Shares That Halted Trading as Panic Spreads
Fallout Of Silicon Valley Bank Collapse Explained
On Monday morning, trading in the shares of a number of banks was halted as panic spread following the collapse of Silicon Valley Bank.
The Nasdaq Trader website published a list of bank shares that were placed under a temporary regulatory halt. Newsweek has listed them below.
Each bank share had been hit with a volatility trading pause, a kind of circuit-breaker that automatically halts trading for a short time when a share's price swings too rapidly. At the time of writing, some of these shares had plunged by more than 60%.
The New York Stock Exchange on March 13, 2023 in New York City. A number of bank shares this morning have been placed under temporary trading halts following the shutdown of the Silicon Valley Bank last week.
• Western Alliance Bancorporation Common Stock
• PacWest Bancorp
• First Republic Bank Common Stock
• Zions Bancorporation N.A.
• OceanFirst Fnl Dp Sh Pfd A
• Customers Bancorp, Inc - Common Stock
• East West Bancorp, Inc.
• Metropolitan Bank Holding Corp. Common Stock
• First Horizon Corporation Common Stock
• Regions Financial Corporation Common Stock
• Comerica Incorporated Common Stock
• Bank of Hawaii Corporation Common Stock
• KeyCorp Common Stock
• Customers Bancorp, Inc 5.375% Subordinated Notes Due 2034
• Macatawa Bank Corporation
• Texas Capital Bnc
• United Community Bk Dep
• The Charles Schwab Corporation - Common Stock
• Coastal Financial Corp Cm St
• Huntington Banc Dep Shs J
• Magyar Bancorp Inc
• Macatawa Bank Corporation
Some of the bank shares listed above had trading halted several times.
A spokesman for First Republic Bank, whose shares as of 1:08 pm EST had fallen 64%, said: "We're continuing to fully serve the needs of our clients by opening accounts, making loans, executing transactions and delivering exceptional service at our offices and online."
A spokesperson for Charles Schwab directed Newsweek to a monthly activity report published today from Chief Financial Officer, Peter Crawford.
"Schwab's business continues to perform exceptionally well," the activity report said in part. "We have access to significant liquidity, including an estimated $100 billion of cash flow from cash on hand, portfolio-related cash flows, and net new assets we anticipate realizing over the next 12 months. We believe we have upwards of $8 billion in potential retail CD issuances per month, plus over $300 billion of incremental capacity with the Federal Home Loan Bank (FHLB) and other short-term facilities – including the recently announced Bank Term Funding Program (BTFP)."
As of 1:22 p.m. EST, shares of Charles Schwab bank had fallen by 10.61 percent.
Newsweek reached out to Western Alliance, Zions Bancorp. and East West Bank for comment via email.
The news on Monday comes shortly after the collapse of Silicon Valley Bank last week.
In a statement, the Federal Deposit Insurance Corporation (FDIC) said: "Silicon Valley Bank, Santa Clara, California, was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB). At the time of closing, the FDIC as receiver immediately transferred to the DINB all insured deposits of Silicon Valley Bank."
According to Investopedia, trading halts are short stoppages across numerous exchanges. "Trading halts are typically applied ahead of a news announcement, to correct an order imbalance, or as a result of a large and abrupt change in the share price," Investopedia states.
On Sunday, the U.S. Department of Treasury, the FDIC and the Federal Reserve issued a joint statement addressing the collapse of the Silicon Valley Bank.
"Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth," the statement said. "We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer."
"The U.S. banking system remains resilient and on a solid foundation, in large part due to reforms that were made after the financial crisis that ensured better safeguards for the banking industry. Those reforms combined with today's actions demonstrate our commitment to take the necessary steps to ensure that depositors' savings remain safe," the statement added.
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