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Stock futures continue to slide, Banking moves send US dollar lower, First Republic Bank $30 billion rescue, Top analyst says banking crisis over, Mortgage rates drop.
Stock futures remained lower on Friday as banking concerns continue to linger despite a lifeline of $30 billion given to First Republic Bank.
S&P 500 futures were down 22.75 points or -0.57%, while Dow Jones futures tumbled 251 points or -0.78% and NASDAQ futures slipped 14.5 points or -0.12% as of 9:31 AM EDT, Yahoo Finance reported.
The benchmark 10-Year Treasury was down -0.111 for a yield of 3.47%, while the 2-Year Treasury was down -0.069 to yield 4.063% as of 9:34 AM EDT.
In oil futures, WTI crude was down -0.64 % and trading at $67.91 a barrel, while Brent crude was down -.090 % and trading at $74.03 as of 8:36 AM CDT.
Following the $30 billion injection by major US banks into First Republic Bank, the US dollar slid slightly lower in early European trading on Friday, dipping by 0.4% at 103.715, Investing.com reported.
A consortium of 11 large US banks banded together to deposit $30 billion in two First Republic Bank (FRC) in a move to stabilize the banking system, Yahoo Finance reported. Among the major banks in the consortium were J.P. Morgan Chase, Bank of America, Citigroup, and Wells Fargo, who each deposited $5 billion, while Goldman Sachs and Morgan Stanley deposited $2.5 billion each, and U.S. Bancorp, Truist, State Street, and Bank of New York Mellon each deposited $1 billion.
A top banking analyst who made a name with bold calls during the height of the 2008-2009 financial crisis is declaring that the current banking crisis is over.
“I think that the near-term banking crisis is definitely over,” Dick Bove, an Odeon Capital Group Financial analyst, told Yahoo Finance Live. His comments follow a $30 billion backstop given to First Republic Bank.
“I think that if you go back in history, you know that time before the Federal Reserve was formed, that’s what was done to preserve stability in the banking industry,” Bove continued. “The banks would come together and basically share funds and bail out the problem company.”
“And then in more recent times, when that mutual fund went down [in 2008], the same thing happened,” Bove explained. “Everybody got together, put money in… and so we’re seeing it happen again. And it works.”
For the first time in six weeks, mortgage rates have fallen, with the 30-year fixed mortgage rate averaging 6.60% as of March 16, which is down from 6.73% recorded last week, according to weekly data compiled by Freddie Mac, FOXBusiness reported. The 15-year fixed rate mortgage was also down slightly at 5.9%, compared to 5.95% last week.
Year-over-year, mortgage rates remain higher, with the 30-year fixed averaging 4.16% and the 15-year fixed averaging 3.39% one year ago.
