Arnd Wiegmann
Fears of customers withdrawing deposits from banks continued to dominate headlines in the past week, triggering sharp declines at several financial stocks this week.
Meanwhile, the financial stock that climbed the most in the week ended March 24 agreed to buy up the deposits and some of the loans of failed Signature Bank.
Credit Suisse (NYSE:CS) American depositary shares tumbled 57% to $0.86 per share after the Swiss government brokered the sale of the company to its larger rival, UBS Group (NYSE:UBS) for $3.25B in stock. U.S. bond investors are preparing to sue the Swiss government over $17B of Credit Suisse that was written down to zero.
First Republic Bank (NYSE:FRC) stock went on a rollercoaster ride this week as investors swung between fear over deposit outflows and hope that JPMorgan Chase’s (NYSE:JPM) Jamie Dimon could rally other banks to support the regional bank. In addition, its credit rating was cut by S&P, Fitch, and Moody’s. Ultimately, FRC sank 46%.
Brazilian fintech Nu Holdings (NYSE:NU), known as NuBank, fell 11%;
Coinbase Global (NASDAQ:COIN) slid 9.5% in a week when the crypto exchange disclosed that the SEC may take enforcement actions against the company. Oppenheimer and Cowen both downgraded the stock.
The fifth biggest decliner of the week, XP Inc. (NASDAQ:XP), another Brazilian fintech, dropped 8.4%.
New York Community Bancorp (NYSE:NYCB) jumped the most this week, +37%, after agreeing to acquire deposits and some loans from Signature Bank, which was taken over by regulators about two weeks ago. That spurred upgrades by Wedbush, KBW, and DA Davidson as the deal accelerates NYCB’s transformation to a more commercial bank-like structure at a good price.
First Citizens BancShares (NASDAQ:FCNCA) stock increased 14% after a media report that it’s considering making an offer for Silicon Valley Bank.
First Horizon (NYSE:FHN) gained 12%; on Friday Wells Fargo analyst Jared Shaw upgraded the stock to Overweight as he still expects that bank’s sale to TD Bank Group (NYSE:TD) to eventually close at the agreed-upon price of $25 per share.
F&G Annuities & Life (NYSE:FG) stock increased 11% in the week its board approved a new three-year $25M stock repurchase program.
Hong Kong-based Futu Holdings (NASDAQ:FUTU) rounded out the top five financial gainers of the week, rising 9.3%.
More on the Bank Crisis:
Image and article originally from seekingalpha.com. Read the original article here.