Financial Armageddon in the US is not cancelled

Financial Armageddon in the US is not cancelled After the bankruptcy of Silicon Valley Bank, the panic about the global banking crisis dropped sharply. But a report from the long-suffering First Republic Bank (NYSE: FRC) revealed that the show's next series has only been delayed by about two months.The situation is unstable: on the one hand, the Fed and the Ministry of Finance confirmed their support for the banking sector through real actions, but the growth of interest rates creates the threat of a recession, defaults and a wave of bankruptcies in the corporate sector.Rating agencies have already entered the fray  they have launched a wave of correction of credit scores. According to Barclays Plc, in the US alone, over $11.4 bln worth of bonds were downgraded to junk status following Q1 reports. By the end of the year, this amount could rise to $80 bln, or 2.2% of BBB-level corporate bonds.Judging by the report of First Republic Bank, its capitalization from the pre-crisis level of $30 bln fell to $3 bln, and this is not the bottom yet. The volume of deposits decreased by 41% (nearly $72 billion), and this was after large US banks invested $30 billion in it to prevent bankruptcy.In March, First Republic Bank borrowed $92 billion from the Fed and some credit groups. Recall: $92 bln is 52% of the volume of deposits at the beginning of the year, that is, the bank replaced half of its real deposits with credit obligations to the Fed and its colleagues. Not surprisingly, First Republic Bank shares are now losing 28.03%, and at the moment there was a drop of 49%.The bank announced the dismissal of 25% of employees and will reduce the share of short-term debt. But no one knows how he will do it. Sooner or later, the markets will also realize the global nature of such problems and begin to get rid of risky assets, so that the process of ruin or takeover of US regional banks will certainly continue.Let's see what happens.Profits to yall!#ForexChief #FirstRepublicBank #stocks #Market #forexnews #SiliconValleyBank #worldnews #nyse