Topline
The most chaotic two weeks in the banking sector since the Great Recession has wiped out hundreds of billions of dollars in global wealth; here are seven numbers and three charts that help define the stunning collapse featuring the second and third-largest bank failures in U.S. history and the highly discounted sale of the 157-year old Swiss stalwart.
It’s been a brutal two weeks for bank stocks.
Key Facts
$275 billion. That’s how much the 10 largest U.S. bank stocks lost in total market capitalization between March 1 and March 17.
80%. That’s how far shares of First Republic tanked from March 8 to March 17, by far the largest loss of any stock listed on the S&P 500 during the stretch, encompassing the growing panic about regional banks.
29%. That’s how much bitcoin is up since banking concerns began to escalate on March 8, growing its market value from $420 billion to $540 billion over the last 12 days.
1,570 points. That’s how much the Dow Jones Industrial Average fell over the last two weeks, wiping out its 2023 gains as the index sits 12% below its January 2022 high.
$153 billion. That’s how much banks borrowed from the Federal Reserve during the central bank’s discount lending window last week, by far hitting its highest level ever, surpassing even its elevated rate during the financial crisis nearly two decades ago.
$17 billion. That’s the amount of Credit Suisse bonds rendered worthless Sunday as part of the flailing bank’s $3.2 billion sale to UBS.
99%. That’s how far Credit Suisse stock cratered in value from its 2007 high of over $70 to its $0.82 valuation in the recent sale.
Contra
Bank stocks rebounded early Monday in an ever-volatile session, with the largest U.S. banks adding back $48 billion in market cap.
Crucial Quote
The “swiftness” with which global financial authorities swooped in on Credit Suisse helped to alleviate the “‘whack a mole’ dynamic of a financial institution under pressure,” JPMorgan analyst Eric Bernstein wrote in a Monday note to clients, warning about the possibility “another ‘mole’ will arise to renew the financial sector stress.”
Further Reading
Bank Stock Crash Deepens: Dow Sinks 400 Points As Top Banks Shed Another $54 Billion (Forbes)
Fed’s Looming Rate Decision Could Confirm Crisis At Hand—Or Trigger A Worse-Than-Feared Recession (Forbes)
Source: https://www.forbes.com/sites/dereksaul/2023/03/20/10-numbers-and-charts-that-sum-up-marchs-banking-fiasco/