Contagion spreads: Trading HALTED in three banks

Trading has been halted in three banks this morning after shares fell as much as 75 percent when the market opened moments after Joe Biden claimed 'US banking is safe'.

Western Alliance Bancorp's stock price dropped by three quarters as the opening bell sounded while shares in First Republic Bank dived 67 percent and PacWest Bancorp plunged more than 35 percent. Trading was swiftly suspended to protect the market from rampant volatility.

Major US banks were also hit as contagion fears spread through the sector with Wells Fargo falling 7.5 percent, Bank of America dropping 7.4 percent, Citigroup falling 5.8 percent and JP Morgan down 2.7 percent.  
Biden attempted to shore up trust this morning as he told a press conference: 'Americans can have confidence that the banking system is safe.'

The White House yesterday guaranteed that Silicon Valley Bank customers would be 'made whole' after US authorities took control following the biggest collapse by a financial institution since 2008.