BREAKING: UK Metro Bank shares plunge 50% as it tries to urgently raise £600m capital
- Metro Bank is seeking to raise up to £600mn after its share price fell almost 50 per cent in recent weeks, said people with knowledge of the plan. The UK challenger bank is in talks with investors about raising £250mn in equity funding and £350mn in debt to shore up its balance sheet, the people said. - The talks came after regulators last month failed to approve a request from Metro to lower the capital requirements attached to its mortgage business. - Bank Crisis - Round II ? Source: FT
In case you missed it. Citigroup $C yesterday closed at its lowest price since the onset of Covid...
Source: barchart
Credit Card Delinquency rates at small banks have reached 7.51%, the highest level ever recorded
Source: FRED
U.S. Banks are facing roughly $600 billion of unrealized losses which accounts for roughly 25% of total banking capital, near the highest levels in history
Source: Barchart, FDIC, Alpine Macro
A lot of US banks deposits are going into money market funds which saw a $6.3 billion inflow last week, up to $5.64 trillion
Money market funds paying 5%+ interest rates have become the new safety trade. Source: www.zerohedge.com, Bloomberg, The Kobeissi Letter Activate to view larger image,
In case you missed it...what's going on with Citigroup?
Yesterday it had its lowest close of 2023, back to the panic levels of mid-March when Silicon Valley Bank failed. Source chart: James Bianco
Italian banks slump after government introduces windfall tax
Deputy PM Salvini announced a 40% levy on extra profits of lenders for 2023 as part of a wide-ranging decree approved at a cabinet meeting. Analysts estimate it will wipe 19% from bank earnings. Levy targets higher interest incomes following rate hikes by ECB. Source: Bloomberg, HolgerZ
