Stock market: Dow Jones falls as banking sector concerns persist
Investors on Wall Street seem nervous about the uncertainty in the banking sector and the economy in general.
Shares opened lower on Friday as news of banking troubles continued.
Shares of First Republic Bank fell 20% after Fitch Ratings said it could downgrade it.
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Fitch said the bank’s liquidity is still weak despite a $30 billion lifeline from major institutions.
Shares of Credit Suisse fell about 9% amid talk of a possible takeover.
Also on Friday morning, the parent company of failed Silicon Valley Bank filed for Chapter 11 bankruptcy. Trading in SVB Financial Group shares halted on Thursday.
The uncertainty in the banking sector began when customers with uninsured deposits began to turn to larger institutions.
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Resident Joe Biden is asking Congress to expand the FDIC’s authority to punish bank executives who fail. He wants the agency to be able to fine them, claw back their pay and ban them from other banking jobs.
Meanwhile, in related news, investors also appear nervous that the Fed may raise rates again next week. They are awaiting a survey from the University of Michigan that assesses consumer confidence.