Regional bank stocks were mixed early Tuesday ahead of testimony from former Silicon Valley Bank and
Signature Bank
executives in front of a Senate panel.
It’s set to be a key day for insight into how the turmoil has played out as regulators will also face questions from the House Financial Services Committee at around the same time.
PacWest Bancorp
(ticker: PACW) stock declined 2% in premarket trading, after rallying more than 17% Monday. Shares in
Western Alliance
(WAL), which have also been under pressure edged higher, building on 12% gains in the previous session.
Zions Bancorp
(ZION) rose 0.5%.
The former Chief Executive of SVB, Gregory Becker, is set to tell senators that the pace of interest rate hikes and a “social media fueled run” on the bank played a key role in its collapse.
Becker said over two days–March 9 and March 10–$142 billion of deposits were withdrawn or requested to be withdrawn from the bank. The previous largest bank run in U.S. history saw $19 billion in deposits withdrawn over 16 days, he said.
“I do not believe that any bank could survive a bank run of that velocity and magnitude,” he said in his written testimony.
Scott Shay, the co-founder and former chairman of Signature Bank, and its former President Eric Howell will also testify to the Senate Banking Committee from 10 a.m. Eastern time.
Write to Callum Keown at [email protected]
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