Complete meltdown in US markets: Trading in over 30 banks halted after shares slump

Trading was temporarily halted in “dozens” of regional American banks on Monday after shares slumped following the collapse of Silicon Valley Bank. The volatile condition of the American market led to trading in roughly a dozen banks being halted. While the market saw a massive drop in the stock prices of several banks, the shares of bigger banks seemed less affected, but not completely immune. 

The stocks of the US regional banks plunged on Monday as investors reassessed how much such lenders were worth following the sudden collapse of Signature Bank and Silicon Valley Bank, the New York Times reported. 

According to US media reports, trading in shares of Silicon Valley Bank's peer Signature Bank, First Republic Bank, PacWest Bank and several others was halted. Trading halted in at least 30 banks as markets opened on Monday morning. Reportedly, Arizona-based Western Alliance stood out as the worst mover on the day, down 80% in early trading. First Republic Bank tumbled 75%, Utah-based Zions Bancorp fell around 20%, Comerica tumbled about 30%, East West Bancorp fell 30% and Regions Financial, headquartered in Birmingham, Ala., was down around 10%.

Notably, the sudden collapse of the Silicon Valley Bank after a failed capital raise has triggered concerns among investors about risks to other banks from sharp rate hikes. Following the collapse of Silicon Valley Bank, the US government debt markets experienced their biggest moves since Black Monday in 1987, which was one of the most severe market crashes on record. The bank’s collapse is being seen as the biggest retail banking failure since the 2008 global financial crisis. 

Biden urges Americans to have confidence in banks 

Amid the scare among investors after the massive plunging of shares of several American banks, President Joe Biden on Monday urged Americans to have confidence in the country’s banking system and said that the nation's financial systems are sound. “American can have confidence that the banking system is safe. Your deposits will be there when you need them,” Biden said.  

Biden’s statements came after US regulators closed the Silicon Valley Bank on Friday after it experienced a traditional bank run, where depositors rushed to withdraw their funds all at once.