The optimism over the US government’s quick reaction to the SVB collapse gave way to cautious investors selling regional banks and the bigger Wall St operators on Monday morning. Yields on the two-year Treasury notes fell 0.456 percentage points in the morning, taking it to the biggest three-day fall since 1987.
Four regional banks had trading in their shares halted after declines of up to 66 per cent.
Among the bigger banks, Credit Suisse (US:CS) fell another 4 per cent, taking its five-day decline to 14 per cent, while Goldman Sachs (US:GS) was down 2 per cent. Main street lender Wells Fargo (US:WFC) tumbled 6 per cent, taking its five-day decline is now 16 per cent. The KBW Nasdaq Bank Index was down 9 per cent on Monday, and 23 per cent since SVB revealed it would need to raise new shareholder funds to survive.