TFC - Deutsche Bank continues decline; Yellen calls FSCO meeting

2023-03-24 10:59:17 ET

Treasury Secretary has called an unscheduled meeting of the Financial Stability Oversight Council (FSOC) on Friday as banking turmoil persists in the U.S. and globally. In Brussels, European Central Bank President Christine Lagarde told EU leaders that the euro-area banking sector is strong and used the market volatility to push for a plan for an EU banking union.

In addition, German Chancellor Olaf Scholz said Friday that Deutsche Bank ( NYSE: DB ) is a very profitable bank and there's no need to worry about its future, according to media reports .

Deutsche Bank ( DB ) stock dropped 7.5% in Friday late morning trading in the U.S. as investor attention turned to Germany's largest lender , putting banking stocks squarely in focus. In Frankfurt trading the stock sank 11% at 3:40 PM CEST.

UBS ( UBS ) registered ordinary shares fell 3.9% in U.S. trading, paring some of its 4.7% drop. That bank is facing pressure as it agreed to acquire sandal-ridden Credit Suisse ( CS ), which suffered from accelerating outflows when U.S. banks Silicon Valley Bank and Signature Bank failed.

The 10-year U.S. Treasury yield ( US10Y ) steadied at 3.36% from its low of 3.29% earlier. The 10-year German government bond yield, at 2.10% recovered from a low of 1.99%.

Bloomberg reported the unscheduled FSOC meeting.

First Republic ( FRC ), which has been trying to come up with a plan to bolster its liquidity, slipped 1.9% in midmorning trading; it has

In the U.S., the KBW Nasdaq Bank Index ( BKX ) dropped 1.6%. Large banks appear to be falling more than regional banks. Morgan Stanley ( MS ) fell 4.2%, Wells Fargo ( WFC ) -2.8%, JPMorgan Chase ( JPM ) -2.1%, U.S. Bancorp ( USB ) -1.7%,  PNC Financial ( PNC ) -1.5%, Regions Financial ( RF ) +0.3%, Truist Financial ( TFC ) -1.5%.

More on the Bank Crisis:

• Deutsche Bank: The Next One To Fall?
• Moody's warns on spillover risk; banks continue emergency borrowing
• U.S. prepared to take more actions to ensure deposits are safe, Janet Yellen say
• Deutsche Bank: The Common Denominator Of Banks Under Fire

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