Regional banks' share prices continued to decline sharply Wednesday, following the sudden collapse of California-based Silicon Valley Bank late last week that sent confidence in the U.S. banking system plunging.
First Republic Bank, which is based in San Francisco, saw its shares fall by more than 21% as of market closure Wednesday, and Los Angeles-based PacWest Bancorp shares declined by almost 13%, according to The Hill.
In Ohio, KeyCorp and Fifth Third Bancorp both dropped nearly 4%, while Huntington Bancshares dipped just below 2%.
Though less dramatic than some of the drops that occurred on Monday, Wednesday's declines testified to the impact of the recent failures of SVB and New York-based Signature Bank on midsize financial institutions.
The collapse of SVB last Friday was the second largest bank failure in U.S. history, behind only the 2008 failure of Washington Mutual; Signature Bank followed on Sunday.
The closure of the banks rattled investors, and midsize banks slid substantially over concerns that depositors would relocate their funds from regional institutions to bigger banks.
On Sunday, the Biden administration took emergency action to shore up confidence in the banking system and to ensure that deposits at both banks would be guaranteed beyond the Federal Insurance Deposit Corporation's insurance of $250,000 per depositor.
President Joe Biden also sought to assure Americans that the U.S. banking system is fundamentally sound, despite the swift collapses of the two banks. He has said that the depositor guarantee is not a bailout of the bank and that taxpayers won't bear the cost.
Regardless, regional banks are feeling the effects of recent events.
According to CNN, S&P Global Ratings said Wednesday that "the risk of deposit outflows is elevated" at San Francisco's First Republic Bank "despite actions by federal regulators."
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