20 m. ago Nearly £11bn wiped off UK banks after US regional banking fears spooked markets – business live

European stock markets have fallen after two US regional lenders disclosed on Thursday that they were exposed to alleged fraud by borrowersGlobal markets fall and gold hits record high amid jitters over US banksUS regional bank stocks fall amid Wall Street concern over credit marketsStorm clouds are gathering over the financial markets, warns Richard Hunter, head of markets at interactive investor:There are increasing signs of storm clouds gathering over markets, with little relief from the building wall of worry.Already grappling with stretched stock valuations in the AI space, an unresolved government shutdown and a deteriorating relationship between Beijing and Washington, investors were exposed to a new source of concern in the form of lending practices and bad loans for US regional banks. Continue reading...

Economics

2 h. ago Jefferies was ‘defrauded’ by First Brands, says chief executive

Rich Handler’s comments came as investors dumped US regional bank stocks over credit quality worries

Politics

3 h. ago FTSE 100 slides as US regional bank worries rock markets – business live

Fear index jumps, and European markets follow Asia lower, as bad loan fears hit valuationsGlobal markets fall and gold hits record high amid jitters over US banksUS regional bank stocks fall amid Wall Street concern over credit marketsStorm clouds are gathering over the financial markets, warns Richard Hunter, head of markets at interactive investor:There are increasing signs of storm clouds gathering over markets, with little relief from the building wall of worry.Already grappling with stretched stock valuations in the AI space, an unresolved government shutdown and a deteriorating relationship between Beijing and Washington, investors were exposed to a new source of concern in the form of lending practices and bad loans for US regional banks. Continue reading...

Economics

4 h. ago Global markets fall and gold hits record high amid jitters over US banks

Signs of credit stress send markets in Europe and Asia down, while investors turn to safe haven assetsBusiness live – latest updatesGlobal stock markets fell sharply and gold hit a record high after two US regional banks said they had been exposed to millions of dollars of bad loans and alleged fraud.Signs of credit stress rattled markets across Europe and Asia. In London the FTSE 100 fell 1.5%, Germany’s Dax fell 2%, the Ibex in Spain was off 0.8% and France’s Cac 40 dropped 1.5%, before recovering some ground. Continue reading...

Economics

8 h. ago FTSE 100 heading for worst day since April as US regional bank worries rock markets – business live

Rolling coverage of the latest economic and financial news, as FTSE 100 share index sheds 150 points in early tradingUS regional bank stocks fall amid Wall Street concern over credit marketsStorm clouds are gathering over the financial markets, warns Richard Hunter, head of markets at interactive investor:There are increasing signs of storm clouds gathering over markets, with little relief from the building wall of worry.Already grappling with stretched stock valuations in the AI space, an unresolved government shutdown and a deteriorating relationship between Beijing and Washington, investors were exposed to a new source of concern in the form of lending practices and bad loans for US regional banks. Continue reading...

Economics

9 h. ago Stock markets hit by US regional bank worries and trade tensions – business live

Rolling coverage of the latest economic and financial newsFears are swirling today that we could be facing a repeat of the US regional banking crisis of 2023.That episode led to the demise of US bank SVB and then Europe’s Credit Suisse.An initially positive risk mood turned during the US session yesterday after news that Zions Bancorp (-13.14%) made a $50m charge-off while Western Alliance (-10.81%) alleged it also suffered from fraud on loans to the same borrowers linked to distressed commercial mortgages.While this was an ostensibly isolated story at two banks each less than $10bn market cap, the event drew inevitable comparisons to the regional bank stress that followed the collapse of SVB in March 2023 and raised broader questions over potential credit quality issues after a lengthy period of elevated rates and expansion in private credit, following also the bankruptcy of subprime auto lender Tricolor last month. Continue reading...

Economics

22 h. ago US regional bank shares sink on credit worries after fraud disclosures

Western Alliance and Zions Bank disclose exposure to alleged fraud

Politics