Banking shares slump despite U.S. assurances that deposits are safe

Traders work on the floor during morning trading at the New York Stock Exchange (NYSE) in New York City on March 10, 2023. Bank shares slumped on Monday despite U.S. regulator action to protect deposits at Silicon Valley Bank and Signature Bank. (Spencer Platt/Getty Images)

Bank stocks slumped on Monday – with First Republic down more than 60% at one point – before shares were halted, despite emergency action by the U.S. to shore up confidence in the financial system after the collapse of Silicon Valley Bank.

Trading of shares of other smaller and regional lenders, including East West Bankcorp and PacWest Bancorp, were also halted after suffering steep declines.