Are PacWest and Western Alliance the Next Two Dominoes to Fall?

May 03, 2023

by Michael Snyder The Economic Collapse Blog

Things weren’t supposed to move this quickly. Just hours after First Republic was dissected, two more major banks are in very serious trouble. Are the dominoes going to start to fall more quickly than we were anticipating? After his bank gobbled up First Republic, Jamie Dimon told the world that “this part of the crisis is over”, and many in the corporate media believed him. Unfortunately, Wall Street is not buying it. On Tuesday, “fears around contagion in the regional banking sector” pushed stock prices significantly lower…

Stocks tumbled on Tuesday as traders’ fears around contagion in the regional banking sector returned ahead of the Federal Reserve’s rate decision.

The Dow Jones Industrial Average fell 367.17 points, or 1.08%, to end at 33,684.53. The S&P 500 slid 1.16% and closed at 4,119.58. The Nasdaq Composite dropped 1.08%, ending the session at 12,080.51. The three major averages fell for a second consecutive session.